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Thursday, August 2, 2012

The Gap Inc.(NYSE:GPS) & Macy's, Inc.(NYSE:M) Soar On July Numbers


Macy's, Inc.(NYSE:M) (36.26 +1.20 or 3.42%) and The Gap Inc.(NYSE:GPS) (32.53 +3.11 10.57%) made US retailers in posting July same-store sales that were on the peak of estimates of the analysts. Warm weather and promotions were responsible for boosting shopping traffic.

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The biggest US specialty attire retailer, Gap saw a leap in its sales by 10%. The figure beat the average projection for 3.8% profit from analysts, as surveyed by a researcher at Retail Metrics Inc. Macy’s, on the other hand, reported a rise in same-store sales by 4.1%, reaching the top of the 2.5% average estimate.

As per the note written by Erika Maschmeyer, an analyst and Robbert W. Baird & Co. in Chicago, higher consumer sentiment and warm weather had facilitated summer sales in the month of July. As per the estimates submitted by ShopperTrak, US retail traffic increased by 7.4% in July.

A retail strategist at Kurt Salmon, New York, Alden Lury stated in a telephonic conversation that in spite of the hard economic environment, customers are making it evident that they are exhausted of the recessionary attitude. Symptoms seem positive around the world and things look well for the holiday season.

Retail Metrics has tracked same-store sales for more than 20 companies. It recorded an increase by 4.4% in the previous month, a figure that has beaten estimates for 1.4% increase. The profit follows a 0.3% raise in June and has topped estimates by the largest margin ever since the US has come out of the recessions.

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Based in San Francisco, Gap saw a rise by 8.8% to $32 as of 11:16 AM in New York. On the other hand, based in Cincinnati, Macy’s had jumped 2.7% to $36.02. Gap North America has reported the best comparable July sales. CEO of Macy’s, Terry Lundgren, stated that the company will continue to gain profit from delivering quality merchandise and fresh fashion to its customers.

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