“(Reuters) – A handful of retailers beat analysts’ sales expectations for May, winning with strong selections of goods or drawing in shoppers looking for deals as high gasoline prices and a sluggish economy tempered demand.
Warehouse club operator Costco Wholesale Corp (COST.O) on Thursday joined department store operator Macy’s Inc (M.N) in reporting sales at stores open at least a year that beat Wall Street estimates.
“Consumers are consolidating trips to the destinations perceived to offer the most overall value, such as Macy’s and Costco,” Wall Street Strategies analyst Brian Sozzi said in a research note.
But a rare sales miss by Victoria’s Secret owner Limited Brands Inc (LTD.N) showed that consumers, still facing high unemployment and gasoline prices near $4 a gallon, are choosy about where they spend and what they buy.
“There’s not really a rising tide,” said Walter Stackow, senior research analyst for Manning & Napier Advisors, which invests in the retail sector. “For every winner, there’s going to be a loser.”
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