Mild weather, falling unemployment and improved consumer confidence helped lift retail sales by 1.1% in February, to a . The increase and edged ahead of consensus expectations for a 1.0% rise.
January numbers, meanwhile, were adjusted higher as well. The new reading reflects sales growth of 0.6%, up from the previously reported 0.4% expansion.
Despite the fact that the average price for a gallon of gas rose by 20 cents in February, vehicle sales were a particular pocket of strength, rising 1.6% in the month. In fact, it was the for U.S. automakers. Excluding autos, retail sales grew by 0.9%.
Fashion Forward
Apparel retailers were also strong during February, collectively posting a sales gain of 1.8%, or the largest monthly increase since November 2010. Not only did a mild winter lure consumers out of their homes and into the malls, but it forced retailers to offer more attractive promotions on leftover winter clothing. Chains such as Gap (NYSE:), Buckle (NYSE:) and The Limited (NYSE:) had previously announced strong same-store sales for February, so overall sales growth in the sector wasn’t a huge surprise.
The “core” sales numbers, which exclude auto, fuel and building-material sales, grew by 0.5% during the month after a 1.0% move higher in January. Core retail sales more closely align with the consumer-spending data point within gross domestic product (GDP).
Seeing More Green?
This growing sales trend could continue this month, in part because St. Patrick’s Day proper falls on a Saturday this year. More than half of the Americans surveyed by the National Retail Federation say by shopping for green gear and hitting the pub for a pint or three.
Americans expect to spend around $35 each, with 82% on the hunt for themed apparel and 30% expecting to go to a restaurant. (How are corned-beef futures looking these days?) What’s more, 24% of those surveyed expect to spend some money on decorations for their home or office. Next comes Easter Sunday (April 8), for which consumers plan to shell out $135 apiece (on average), and some of this spending may occur in March.
The Retail HOLDRS ETF (NYSE:) is up a fraction in morning trading today. Some of the outperforming names in the sector so for this session include Pacific Sunwear (NASDAQ:) — which reports earnings after today’s close — Lowe’s (NYSE:), Barnes & Noble (NYSE:) and Office Depot (NYSE:).
As of this writing, Beth Gaston Moon does not own any shares mentioned here.
