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Most Retailers Top Expectations for September Sales

Published: Thursday, 8 Oct 2009 | 9:54 AM ET

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By: CNBC.com

A late Labor Day holiday and delayed purchases for back-to-school helped the vast majority of retailers to post stronger-than-expected sales in September.

Shopper with bags
Kirsty Wigglesworth / AP

Still, it remains tough going for most retailers, and many continue to post declines in sales at stores open at least 12 months, a key measure of store health.

Consumers continue to spend cautiously and retailers are being guarded in their forecasts.

For example, even though discount retailer Target [TGT Loading... () ] posted a narrower decline in sales than analyst were expecting, and predicted that its third-quarter earnings would top analyst estimates, the company said it is still cautious about the fourth quarter.

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Among the strongest results was drugstore retailer Walgreens [WAG Loading... () ], which said its same-store sales rose 5.3 percent outpacing a 3 percent estimate, according to Thomson.

Many apparel retailers also had strong showings as consumers replenished their closets. Among those topping estimates were The Buckle [BKE Loading... () ], Children's Place [PLCE Loading... () ], Limited [LTD Loading... () ], and Hot Topic [HOTT Loading... () ].

Department stores J.C. Penney [JCP Loading... () ] and Macy's [M Loading... () ] also posted smaller-than-expected declines.

Even many teen apparel retailers, which were expected to be the weakest of the bunch, topped analyst estimates.

Aeropostale [ARO Loading... () ] continued to win shoppers with its low prices. Same-store sales surged 18 percent, and prompted the company to raise its third-quarter earnings outlook.

Abercrombie & Fitch [ANF Loading... () ], which has been struggling in recent months, also managed to outpace estimates. Its same store sales declined 18.0 percent, which was narrower than the 21.0 percent decline predicted by analysts.

Although many of the retailers are still reporting declines in sales, a close watch on costs means that even small strides in monthly sales can help the bottom line. This means several companies were able to raise their profit forecasts.

In addition to Aeropostale, J.C. Penney, TJX [TJX Loading... () ] and American Eagle [AEO Loading... () ] increased their earnings forecast.

To track the results so far, see the following table:

September Same-Store Sales Forecasts

Retailers	September 2009 Actual Sales	September 2009 Estimated Sales
Costco Wholesale	1.0%	(0.07%)
BJ's Wholesale	(0.5%)	(1.0%)
Target	(1.7%)	(2.0%)
JC Penney	(1.4%)	(-3.5%)
Kohl's	5.5%	0.1%
Dillards	9%	(9.8%)
JW Nordstrom	(2.4%)	(6.0%)
Saks	(11.6%)	(11.1%)
Macy's	(2.3%)	(4.6%)
Gap	(1%)	(0.4%)
TJX	7%	4.1%
Limited	1.0%	(2.4%)
Abercrombie	(18%)	(21.0%)
Children's Place	4.0%	(1.3%)
Aeropostale	19%	12.4%
Hot Topic	(4.0%)	(6.3%)
The Buckle	5.1%	5.8%
Zumiez	(0.8%)	(1.0%)
Walgreens	5.3%	3.0%
Rite Aid	(0.3%)	(0.6%)