|SUMRX October Same Store Sales Review— Upside monthly results and guidance trump Sandy concerns|
|The majority of retailers reported October Same Store
Sales before the open today. Results can be accessed on our Same Store
Sales calendar. |
Overall October results topped expectations (twelve beat consensus estimates, six missed). Half of the names that missed still reported upside Q3 guidance (LTD, GPS, ROST). Most of the retailers provided Q3 updates with their October comps results (ahead of earnings releases—report mid to late November)... Upside guidance: BKE, BONT, GPS, KSS, LTD, M, ROST, SMRT, TJX, WTSLA... Downside Guidance: ZUMZ... Reaffirmed/in-line guidance: CATO, JWN, HOTT
Better than expected October results and guidance is helping boost retail names despite any lingering concerns that Hurricane Sandy has deterred and disrupted discretionary shopping (results for the month included sales through Saturday October 27). The retail sector is modestly outperforming the overall strong market following October Same Store Sales results and guidance. The SPDR Retail (XRT) is +1.4%, Consumer Dis Spdr (XLY) +1.3%, S&P Retail (RLX) is 0.7%, Retail HOLDRS Trust (RTH) +0.6%, vs S&P500 index (SPX) +1.1%.
Some cos that beat October Same-Store Sales estimates include (listed according to the magnitude of the beat):