There was more evidence that U.S. consumers are back in action today. Many retailers saw better-than-expected sales in November, thanks to strong "Black Friday" and "Cyber Monday" results.
Sales at stores open at least one year jumped 6% in November, well above expectations for a 3.6% gain, according to the Thomson Reuters Same-Store Sales Index. The increase was also a big jump from last November's 0.6% gain.
Many retailers, including Macy's (M), started their holiday promotions before "Black Friday," the day after Thanksgiving that unofficially kicks off the holiday shopping season. Macy's saw sales rise 6.1%, above expectations for a 5% gain, while fellow department store chain J.C. Penney's (JCP) sales jumped 9.2%, topping the consensus estimate for a 3.1% increase. Kohl's (KSS) also fared well, with a 6.1% increase in November sales, above expectations for a 2.8% gain.
Teen retailer Abercrombie & Fitch had a fantastic November, with sales soaring 22%, far better than the 6.8% estimate, but rival Aeropostale (ARO) had a disappointing month, with sales down 1%, worse than expectations for a 0.6% gain.
Discount stores also had a good month, with Target (TGT), Costco Wholesale (COST) and TJX (TJX), the parent of TJMaxx, beating expectations. Target's sales were up 5.5%, above the 3.7% estimate, Costco's sales rose 9%, above analysts' 6.2% estimate, and TJX's sales rose 3%, beating the 2.9% estimate.
While retailers are hoping the momentum will continue through Christmas, UBS analyst Roxanne Meyer told MarketWatch to be cautious. "It’s too soon to call holiday overall,” she said. “It was “a decent November, but will Black Friday-type promotions continue?”
Ken Perkins, president of Retail Metrics, thinks so. "Across the board, there was widespread strength,” Perkins told Bloomberg. “The consumer is feeling better about their situation and is more inclined to spend on discretionary purchases. It bodes well for what will come over the next three and a half weeks.”
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