Sector Snap: Dept. store operators up on May sales

Department store operators traded mostly higher Thursday as May same-store sales results managed to surpass analysts' estimates.

According to a preliminary report from Thomson Financial, of 23 retailers reporting their May sales so far on Thursday, 13 beat expectations, 3 met expectations and 7 missed. The tally is based on same-store sales, or sales at stores open at least a year, which is considered a key indicator of a retailer's strength.

Kohl's Corp. reported its same-store sales fell 7.2 percent in May, which was slightly better than the analysts' forecast for an 8 percent decline.

Kohl's stock rose $1.71, or 3.8 percent, to $46.95 in morning trading. Over the past 52 weeks, the stock has traded between $37.31 and $76.43.

Meanwhile, J.C. Penney Co. said its monthly same-store sales slipped 4.4 percent, but the results topped Wall Street's estimate for a 5.8 percent drop.

Shares of J.C. Penney gained $1.34, or 3.4 percent, to $40.70. The stock has traded in a range of $33.27 to $82.30 over the past year.

Among those reporting improved same-store sales were Nordstrom Inc. and Stage Stores Inc.

Nordstrom's same-store sales surged 10.9 percent in May as the apparel retailer kicked-off a sale event earlier than last year. Analysts surveyed by Thomson Financial expected the company's sales to rise 8.1 percent.

Nordstrom's stock added 60 cents to $35.89. The stock has traded in a 52-week range of $28 to $54.

At Stage Stores, May same-store sales edged up 0.1 percent to beat Wall Street estimates as customers responded to promotions. Analysts predicted a 5 percent same-store sales decline.

Shares of Stage Stores climbed 93 cents, or 7 percent, to $14.31.