Last Update: 12:48 PM ET Dec. 26, 2001
NEW YORK (CBS.MW) - Retail stocks were ringing up heavy gains on Wednesday despite signs of sluggish sales for most merchants leading up to the Christmas holidays.
At last check, the S&P Retail Index ($RLX: news, chart, profile) was higher by 14.31, or 1.6 percent, at 932.13.
Wal-Mart Stores (WMT: news, chart, profile) said sales in the final shopping days before Christmas pushed expectations for December sales growth to the upper range of the discount giant's forecast.
Wal-Mart's shares rose $1.44, or 2.5 percent, to $58.57.
Kmart (KM: news, chart, profile), on the other hand, said same-store sales for the period were expected to be in the low range of its expectations.
But Kmart's shares were up 12 cents, or 2.3 percent, at $5.27.
Post-Christmas highs
Shares of Zale (ZLC: news, chart, profile) hit a new 52-week high after Goldman Sachs raised its target on the jewelry retailer to "market outperformer" from "market performer."
Goldman also raised its full-year earnings estimates for the company for fiscal 2002 to a range of $2.80-$2.85 a share, citing better-than-expected holiday results.
Zale's stock rose $1.15, or 3 percent, to $41.12. It touched its previous 52-week high of $41.05 just days earlier, on Dec. 21.
Shares of luxury retailer Tiffany (TIF: news, chart, profile) rose 4.8 percent after UBS Warburg raised their rating to a "strong buy," noting that "more can go right at the margin than wrong" for the luxury retailer.
Shares of Lowe's (LOW: news, chart, profile) surged to a hit a new 52-week high of $48.60, a gain of $1.22, or 2.6 percent.
Sears' (S: news, chart, profile) stock also touched a new year high when it added 66 cents to trade at $48.55.
And office-supply retailer Staples (SPLS: news, chart, profile) rose to a fresh 52-week high of $19.05 before falling into the red. At last check, Staples shares were trading at $18.60, down 35 cents.
Shares of Gap (GPS: news, chart, profile) moved higher after losing ground on Monday. Gap's stock rose as much as 25 cents, or 1.9 percent, to a high of $13.24.
Limited's (LTD: news, chart, profile) stock also ticked higher by 50 cents to $14.95, a 3.5 percent rise.
But shares of Toys 'R' Us (TOY: news, chart, profile) lost ground, falling 91 cents, or 4.4 percent, to $19.99.
Internet retailers soar
Shares of Internet retailers shot even higher than their bricks-and-mortar counterparts after Yahoo (YHOO: news, chart, profile) said its holiday sales were 86 percent higher than the holiday period of 2000. See full story.
Yahoo's shares rose $1.60, or 9.6 percent, to trade at $18.27.
Amazon's (AMZN: news, chart, profile) stock climbed on signs of a strong holiday season for the e-tailers, adding $1.46, or 14.9 percent, to $11.29.
Online auction house EBay (EBAY: news, chart, profile) gained $2.77, or 4.3 percent, to $66.58, and Priceline (PCLN: news, chart, profile) added 51 cents, or 9.7 percent, to touch $5.77.
Industry results point to weakness
For the U.S. retail industry overall, sales for the week ended Dec. 22 fell 0.6 percent compared to the same period last year, Instinet said in its latest LJR Redbook report.
And for the month to date, retail sales were 0.9 percent lower than 2000, compared to forecasts of a 1.2 percent slide.
So far, sales for the month are tracking 4.5 percent lower than November levels. Instinet had been forecasting a 4.7 percent drop.
Instinet said sales in the last shopping week remained sluggish due to warmer than usual weather.
Sales were exceptionally strong in the home entertainment category, including DVDs, televisions and game consoles.
Instinet also said that heavy discounting is expected to put retailers' profit margins under pressure.
The Redbook report covers more than 9,000 stores across the country, including retail, discount and chain outlets. |
