by Zacks Equity Research Published on July 15, 2014
The key data in the retail industry analysis is comparable-store sales (comps), as it excludes sales at newly opened and closed stores. The sales data of most retailers reveal that the industry has been picking up with better-than-expected comps reported for the fourth straight month, owing to huge promotional activities, favorable weather, Easter Sales, Memorial Day weekend sales and the recently improved employment and consumer credit data.
The latest key metrics data released last week reflect a positive sentiment with all but 2 of the 11 retailers that report monthly comps emerged as winners. The improved results in June were mostly attributed to a rise in traffic resulting from the positive economic factors like a 0.2% decline in unemployment rate and 7.4% rise in consumer credit as well as heavy promotions and favorable weather.