Making sense of the apparel market

Strength in the apparel category continued at Target during July, with same-store sales increasing just below the company average of 4.1%, positioning the company as a winner in a month where performance among competitors was uneven.

Joining Target in the positive column were such companies as Macy’s, Ross, TJX and JCPenney. Comps at Ross increased 7.7%, and TJX’s increased 4%, hardly surprising since both companies’ value orientation has allowed them to perform well during challenging economic conditions. JCPenney experienced a 3.3% increase, and Macy’s comps continued to show strength, up 5%.

“Our July sales performance once again exceeded our expectations and represented a continuation of the balanced success we have seen throughout the year,” said Terry Lundgren, Macy’s chairman, president and CEO.

Meanwhile, Kohl’s comps declined 4.6%, which chairman, president and CEO Kevin Mansell said was disappointing considering the company had performed well in June.

The nation’s specialty apparel retailers also reported mixed results in July, as Hot Topic and Limited Brands turned in strong performances, while Gap and Aeropostale stumbled. Hot Topic said its same-store sales rose 7.3% in July while Limited Brands total comps rose 6%.

Conversely, Aeropostale said that its same-store sales for the second quarter fell 14% which was worse than planned and Gap reported a comp decline of 5%, including a 6% drop in North America. Other notable apparel retailers reporting July increases included Zumiez, up 4.9%, Wet Seal, up 7.4% and The Buckle, up 6.8%.