Easter Bunny Showed Up Early for Gap, Wal-Mart

Thursday, 12 Apr 2007 | 4:50 PM ET

, but Citigroup analyst Kimberly Greenberger wants to see continuous growth before she believes in store like Gap again. She and J.P. Morgan broadline retail analyst Charles Grom gave their industry opinions on "Power Lunch."

Greenberger noted that an earlier Easter this year meant Gap and Banana Republic ran sales specials in March -- a month earlier than in 2006. She told CNBC's Sue Herera that she's reserving judgment on the stores' turnaround programs. She praised American Eagle Outfitters' 20% rise in same-store sales -- "the best in the sector" -- but she remains leery of the teen clothier's implied guidance for April.

Same Store Sales
Analyzing whether March same store sales numbers are a sign of things to come, with Charles Grom JPMorgan broadline retail analyst; Kimberly Greenberger, Citigroup retail analyst and CNBC's Sue Herera

Grom said Wal-Mart Stores had a similar story: the world's biggest retailer beat March expectations with a 4% rise in same-store sales, but it expects U.S. same-store sales to come in between flat and 2% lower in April.

But Grom is overweight in CostcoWholesale and BJ's Wholesale Club, calling them plays on an economic slowdown. And he thinks Costco, as a "slightly upscale" discounter, will gain share from Wal-Mart's more posh Sam's Club business.

  Price   Change %Change


  • Showtimes

    United States
    Monday - Friday 1:00P ET
    Monday - Friday 18:00 CET
    Asia Pacific
    Tuesday - Saturday 01:00 SIN/HK
    Tuesday - Saturday 03:00 AEST
  • Sue Herera is a founding member of CNBC, helping to launch the network in 1989. She is co-anchor of "Power Lunch."

  • Tyler Mathisen co-anchors CNBC's "Power Lunch." Mathisen also co-anchors "Nightly Business Report produced by CNBC."

Power Pitch

Kenny Polcari