Here’s Why Retail Stocks are Loving Summer Sales
Retail stocks are up today after retailers reported June same-store sales that exceeded expectations. The S&P Retail Index (XX:RLX) is up 2.58% so far, Target (NYSE:TGT) is up 6.03%, Kohl’s (NYSE:KSS) is up 6.70%, Limited Brands Inc. (NYSE:LTD) is up 2.70%, Gap Inc. (NYSE:GPS) is up 4.42%, and Macy’s (NYSE:M) is up 3.67%, all topping analysts’ estimates.
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However, J.C. Penney (NYSE:JCP) shares are down 1.73% today after reporting June sales below projections and the company lowered its second-quarter profit forecast.
Last week, chain store sales were up 3.5%, the highest one-week gain since January 8. The Johnson Redbook Retail Sales Index was up 5.2% year-over-year last week. Higher sales are being attributed to the holiday as well as warmer weather and lower gas prices.