Santa Delivers For U.S. Retailers - Expectations Surpassed

[berni_mccoy]

http://www.marketwatch.com/story/santa-delivers-for-us-retailers-2010-01-07?reflink=MW_news_stmp

NEW YORK (MarketWatch) -- Inventory control, coupled with last-minute shopping and post-holiday bargain hunting, drove U.S. retailers' best monthly sales in more than 20 months, results showed Thursday, and several -- from discounter Target Corp. to upscale retailer Nordstrom Inc. -- gave rosier profit outlooks.

Target (TGT 50.13, +0.47, +0.95%) , the No. 2 U.S. discounter, said it expects to meet or exceed analysts' average fourth-quarter profit estimate of $1.11 a share. Its December sales rose 1.8%, against analysts' expectation for a decline.

Sears Holdings Corp. (SHLD 98.94, +10.07, +11.33%) was a surprise winner, projecting a higher fourth-quarter profit that topped Wall Street expectations, as December same-store sales unexpectedly rose 0.4% on gains at its Kmart chain.

As a sign that consumer spending is gradually recovering and shoppers feel more comfortable about buying items they don't need, Nordstrom (JWN 38.68, +1.25, +3.34%) and fellow luxury retailer Saks Inc. (SKS 7.30, -0.14, -1.88%) reported much-better-than-expected monthly sales gains of 7.4% and 9.9%, respectively.

Further, Macy's Inc. (M 17.25, +0.15, +0.90%) raised its outlook after sales rose more than expected, citing strength at both its namesake stores and its upscale Bloomingdale's division.

Very good news for the economy.