Apparently higher gas prices and the expiration of the payroll tax holiday didn't stop consumers from shopping till they dropped in January. A composite of 18 retailers tracked by Thomson Reuters posted a solid +5.8% increase in same-store sales for January, well above expectations of +3.5%.
Here are some of the standouts for January:
Kohl's Corp. (KSS): +13.3%
Macy's Inc. (M): +11.7%
Nordstrom Inc (JWN): +11.4%
Stage Stores Inc. (SSI): +10.5%
Limited Brands Inc. (LTD): +9%
Gap Inc (GPS): +8%
I think that at least some of this can be attributed to the wealth effect from higher stock and home prices. Especially the home prices part considering the painful 6 year slump in home values.
What do you think is behind this recent consumer strength? Chime in below.
Read the analyst report on KSS
Read the analyst report on JWN
Read the analyst report on SSI
Read the analyst report on LTD
Read the analyst report on GPS
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