Yesterday, fellow Fool Seth Jayson penned an insightful piece reminding investors to exercise some independent judgment and not fall prey to the headline-driven media. As an example, he cited an AP article that painted a bleak picture of the nation's November retail comps picture. My initial reaction to the dour report was similar: Sure, it doesn't take much digging to uncover areas of weakness, but many people appear to be unduly focused on poor performance while glossing over any signs of strength.
To be fair, Target (NYSE:TGT), which met estimates by posting a 3.2% increase in same-store sales, has been an oft-cited exception. And there have been passing references made to companies such as J.C. Penney (NYSE:JCP), which reported a solid 12% gain in comps. But these seem to be portrayed only as statistical outliers. Many other companies have been largely overlooked, such as Walgreen (NYSE:WAG), whose comps advanced 11.4%, and Starbucks (NASDAQ:SBUX), which reported a 13% increase.
Another company that continues to outperform is Children's Place (NASDAQ:PLCE). After closing out a sensational third quarter in October, highlighted by a 52% surge in earnings, the children's apparel retailer has jumped out to a strong fourth-quarter start. Driven by a 9% improvement in November same-store sales, monthly revenues spiked 47% to $118.7 million. Not only was traffic on the rise, but those customers rung up larger tickets as well, as average transaction size increased by 6%. Meanwhile, comps at rival Gymboree (NASDAQ:GYMB) dropped 10% for the month.
Some of the credit goes to the newly acquired Disney stores, which officially became a Children's Place subsidiary just in time for Thanksgiving shopping. The outlets contributed $23.3 million in sales in just one week of operation. Disney Princess merchandise was reportedly popular, and demand was high for items related to The Incredibles, the blockbuster collaboration of Disney (NYSE:DIS) and Motley Fool Stock Advisor selection Pixar (NASDAQ:PIXR).
In the company's sales call, newborn apparel and accessories were singled-out as the top categories, with same-store sales gains in the mid-teens. Echoing observations made earlier by companies such as Overstock.com (NASDAQ:OSTK), online shopping continues to gain strength, as revenues from the firm's e-commerce operations shot up 90% (following a 100% rise last year) in the crucial final week of November.
Heading into the final month of the year, sales are tracking 26% ahead of last year's pace at $814.1 million. Excluding the Disney Stores, which are expected to be modestly accretive, management reaffirmed its full-year earnings outlook, which forecasts a 60% jump to $1.36. With all that gloomy talk floating around, Children's Place shareholders might be wondering what all the fuss is about.
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Fool contributor Nathan Slaughter spends far more money on his toddler's wardrobe than he does on his own. He owns none of the companies mentioned.
