March’s Retail Winners (BKE, FRED, GYMB, HOTT, JCP, TJX)

We are still seeing overall weak trends in the retail sector.  This is no shock based upon the overall drop in the economy and the growing army of unemployed workers out there.  But there are  some retail winners out there.  Companies such as Buckle Inc. (NYSE: BKE), Fred’s Inc. (NASDAQ: FRED), Gymboree Corp. (NASDAQ: GYMB), Hot Topic (NASDAQ: HOTT), J.C. Penney Company (NYSE: JCP), and The TJX Companies Inc. (NYSE: TJX)  posted strong March same-store sales.

Buckle Inc. (NYSE: BKE) is trading up this morning marginally after reporting that its same store-sales rose 14.7%.  The casual retail also noted that its total sales were up 21.5% for the month. Shares are trading up about 1.6% to $34.25.

Fred’s Inc. (NASDAQ: FRED) said that its same-store sales were up by +1.9% based on increased bargain shoppers.  No volume or trading indications have been seen yet, but there is still a while before the open.

Gymboree Corp. (NASDAQ: GYMB) said it saw a mid-teens percentage drop, but this is much better, or less-bad, than the 20% to 25% drop it was expecting.  The company raised its earnings guidance to $0.50 to $50.56 EPS rather than a prior forecast of $0.18 to $0.25 EPS.  The company attributed product reception and promotional campaigns as contributing to margins.  Its shares are up over 16% and flirting with the $25.00 mark this morning.

Hot Topic (NASDAQ: HOTT) is continuing to win from its ‘Twilight’ ties with a gain of +7.1% n same store sales.  The company now expects to earn money with $0.01 to $0.02 EPS rather than a loss to gain of -$0.01 to $0.01 EPS.  Shares are up over 3% to north of $12.00.

J.C. Penney Company (NYSE: JCP) posted a drop of 7.2% in same-store sales.  While this is a big drop, it is less than elsewhere and less than estimates of double-digit drops.  The loss of the quarter is now seen at -$0.05 to -$0.10 rather than a loss of -$0.20 to -$0.20.  Shares are up 5% at $23.80.

The TJX Companies Inc. (NYSE: TJX) said its same-store sales rose 2% rather than an expected drop of about 2% seen by analysts.  Its total sales remained flat at $1.7 billion, but the discount seller now sees earnings at the high end or slightly above its previous forecasts of $0.32 to $0.38 EPS.  Shares are now up over 4% at $27.85.

JON C. OGG