Shares of specialty retailers edged higher Thursday along with the broader retail sector after many of the nation's chains reported better-than-expected May sales, helped in part by tax rebate checks.
The S&P Retail Index added 6.81 points, or 1.7 percent, to 406.42.
Apparel retailers excluding Gap Inc. posted an average decline in May same-store sales of 0.3 percent, better than the average analyst estimate for a 0.8 percent decline, according to Thomson Financial. Including Gap, sales in the sector declined 3.8 percent.
Cato Corp., which operates the "Cato" and "It's Fashion" stores, and TJX Cos., parent of T.J. Maxx and Marshalls, both reported same-store sales in May rose 2 percent. Value-priced retailers such as TJX and Cato tended to post better sales as consumers pulled back on higher-end spending. Cato shares rose 50 cents, or 3.3 percent, to $15.68, while TJX shares added 66 cents, or 2.1 percent, to $32.89.
On the declining side, San Francisco-based Gap reported May same-store sales plunged 14 percent, versus the average analyst estimate that forecast a 9.5 percent decline. The company's Old Navy chain posted the largest loss, as sales at the division plummeted 25 percent. In morning trading, the company's stock edged up 25 cents to $18.05.
Same-store sales is a key indicator of retailer performance since it measures growth at existing stores rather than newly opened ones.
Chico's FAS Inc. of Fort Myers, Fla., posted a 16.9 percent drop in comparable sales last month, missing a 14.7 percent loss estimate and putting it among the worst of the women's specialty sector.
Margaret Whitfield of Sterne, Agee and Leach Equity Research wrote in a note that Chico's merchandise is "perhaps too youthful and not trend right."
Shares rose 9 cents to $7.75.
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