Retail Stocks End 1Q With A Gain, But It Wasn't Easily Won
Date : 03/31/2009 @ 4:24PM
Source : Dow Jones News
Stock : Saks Inc. (SKS)
Quote : 4.98 0.68 (15.81%) @ 8:00PM
Retail Stocks End 1Q With A Gain, But It Wasn't Easily Won
By Karen Talley
Of DOW JONES NEWSWIRES
NEW YORK -(Dow Jones)- Retail stocks went through heavy discounting and markups during a rollicking first quarter that culminated with a buying surge that put the group in the green by March's end.
With the last session of the quarter just about over, the Standard & Poor's Retail Index is ahead 18% for the month and up 6.3% so far this year. With an advance of 0.7% to 282.37 on Tuesday, the index is on pace to show a gain for the final day of first-quarter trading, after starting the session to the downside.
A late-quarter surge followed improvement in same-store sales and a general market rally on some improved sentiment about a quicker recovery for banks and the general economy.
Retail stocks were fast out of the gate as 2009 began, rising 8% in the first three days of trading to close at 301.62 on Jan. 6. The surge was part of a 41% comeback after the group bottomed at 213.50 on Nov. 20 as the economy -- and retail sales -- dramatically deteriorated.
The bottom marked a 60% descent from the record high of 537.21 that the index reached on Feb. 20, 2007.
It was a broadly good month for retail shares, with all but nine of the S&P Retail Index's roughly 95 members rising.
In many cases percentage moves were expansive because the stocks came into the year at such depressed levels as investors fretted about retailers' futures.
Regional retailer Stein Mart Inc. (SMRT) led advancers in March, rising 146% to $2.95. Zale Corp. (ZLC), part of the hard-hit jewelry group, gained 63%. Charlotte Russe Holding Inc. (CHIC), which put itself up for sale, advanced 55% in March.
Saks (SKS), a struggler from last year, lost another 22% for the month, part of its 57% loss for the quarter. AnnTaylor Stores Inc. (ANN) dropped 18% in March and 6.6% for the first quarter. OfficeMax Inc. (OMX) fell 15% for the month and is now down 58% for the first three months of 2009.
-By Karen Talley, Dow Jones Newswires; 201-938-5106
