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Macy's, which owns the Macy's and Bloomingdale's department chains, continued its strong monthly performance, reporting that revenue figure rose 7.3 percent, which beat analysts' expectations of a 4.8 percent rise. As a result, the company raised its forecast for revenue in stores open at least one year during the combined March and April period, to a 4.3 to 4.5 percent rise, from prior guidance of 3 to 3.5 percent rise. Even Gap Inc., which had been struggling recently, reported gains. In fact, the retailer, which owns Gap, Old Navy and Banana Republic, was one of the biggest success stories of the month. Revenue in stores open at least one year rose 8 percent, better than the 5.4 percent rise analysts polled by Thomson Reuters expected. "We delivered solid sales performance in March and are pleased with customer response to product across all brands," said CEO Glenn Murphy. While March revenue figures are encouraging, analysts caution that retailers should not count their eggs before they hatch. After all, gas prices -- hovering around $4 -- continue to weigh on consumers and that hurts stores that cater to lower-end shoppers. Drug-store Walgreens and lower-end department stores Bon Ton Stores Inc. and SteinMart all both reported a decline in revenue in stores open at least one year in March. Analysts also say a more accurate picture of Americans' spending will emerge after April since an earlier Easter holiday this year likely pushed some sales into March. "April is a potentially difficult month," Perkins said. "Unseasonably warm weather pulled forward spring selling, and there aren't really any catalysts once Easter is over in the month. Everything hinges on the weather continuing to improve and that may not materialize."
[Associated
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