Retailers report solid sales

Analyst: Tax refunds help boost spending

? Consumers reassured by an improving economy regained their appetite for shopping in February, giving retailers solid sales for the month.

As merchants reported their results Thursday, a broad range of companies beat Wall Street sales forecasts, including Wal-Mart Stores Inc., J.C. Penney Co. Inc., Talbots Inc. and teen retailers such as Bebe Stores Inc.

One of the few disappointments was Limited Brands Inc., which reported sales below Wall Street expectations.

“The numbers are really good so far. It shows that consumers are doing better than I thought they were doing,” said Ken Perkins, retail analyst at RetailMetrics LLC., a research firm in Swampscott, Mass. “The economy appears stronger than initially expected. And consumers are responding to spring fashions, despite the cold weather snap.”

Consumers’ tax refunds, which are running substantially higher than a year ago, are boosting spending as well, he said.

Wal-Mart Stores reported a 4.1 percent increase in same-store sales, surpassing estimates of analysts surveyed by Thomson First Call, who had forecast a 3.7 percent gain. Total sales rose 10.9 percent.

Same-store sales are sales at stores open at least a year and are considered the best indicator of a retailer’s health.

JC Penney had a 6.1 percent gain in same-store sales in its department store business, better than the 4.3 percent analysts expected. Total sales rose 6.6 percent. The company said sales of spring apparel and other seasonal merchandise exceeded expectations.

Talbots had an 8.1 percent gain in same-store sales, surpassing Wall Street’s 2 percent estimate. Total sales rose 13 percent.

“Our performance was driven primarily by strength in regular-price selling of our early spring merchandise,” Talbots CEO Arnold Zetcher said.