NEW YORK (AP) - Retailers reported surprisingly solid January revenue gains Thursday that swept away fears that snowstorms in much of the country had chilled sales. The reports, which are being compared with a respectable January 2010, offer encouraging signs that consumer spending is maintaining the momentum of the strong holiday season.
Many retail chains, including Costco Wholesale Corp, Victoria's Secret parent Limited Brands and Macy's Inc., posted gains that beat Wall Street expectations.
Luxury merchants Nordstrom Inc. and Saks Inc. also were bright spots as the affluent, encouraged by the rallying stock market, continue to lead the spending recovery.
"The early going looks good, despite the multiple snowstorms," said Ken Perkins, president of RetailMetrics LLC, a retail research firm. "It's encouraging, and you're seeing other economic signs that things are turning around."
Among the notable stragglers was Target Corp., whose business was below expectations, particularly in the South and Northeast.
The figures are based on revenue at stores open at least a year and are considered a key indicator of a retailers' health.
J.C. Penney Co. reported an unexpected revenue decline; officials blamed lower levels of winter clearance compared with last January, as well as bad weather.
January is the least important month of the year for retailers because they use the month to clear out winter goods to make room for spring merchandise. But it brightened fiscal fourth-quarter profit outlooks from Limited Brands, J.C. Penney and teen retailer Wet Seal Inc.
In recent weeks, analysts had racheted down expectations as a series of snowstorms in several parts of the country kept shoppers at home and chilled their appetite for spring clothing.
But while retailers noted in their reports that the snowy weather did curb some spending, underlying consumer strength remained strong, adding hopes for a sustainable economic recovery.
Consumer spending was the main reason the economy grew at an annual rate of 3.2 percent in the final three months of 2010, the Commerce Department said Friday. It was up from 2.6 percent the previous quarter and the best since the start of last year.
