Youth-Apparel Stores Showed Strength in May
With May same-store sales out today, one analyst said that youth apparel retailers performed well last month, though he expects the next two months will be better tests for consumer sales.
Strong sales at Pacific Sunwear and Zumiez represent "their strength in the West Coast lifestyle," Piper Jaffray retail analyst Jeff Klinefelter said on "Squawk Box." He added that small cap vendor Phillip Van Heusenperformed well also.
However, he said May is not a leading indicator across the retail market, because it was a transition month from the holidays in April.
As for department stores, there were mixed reports, as Kohl's did very well and JCPenney did poorly.
Klinefelter added that the effects of gas prices on apparel is temporary, though the real test is the back-to-school season sales.
"We are building into the peak back-to-school season and that's going to be the critical period to judge the consumer," he said.
Though Wal-Mart and Hot Topic didn't have strong sales, Klinefelter has hope for the future, as "we think it's really going to be about how people perform against denim numbers for teen retailers going into June and July."