Las Vegas retailers join in upbeat outlook

NEW YORK -- Retailers from discounter Target to department-store chain Macy's reported better-than-expected sales in March in the latest sign that Americans are feeling better about the economy.

A combination of warm weather and high demand for spring fashions boosted revenue for the month, but analysts say there's much more than higher temperatures at play: Americans who cut back on spending in the slow economic recovery are encouraged by the improving job market.

"There's a growing belief we reached bottom a while ago," said Joel Bines, managing director of the retail practice of AlixPartners. "Rather than confidence that things have turned the corner, it's confidence that things are unlikely to get worse from here."

Even though only a handful of retailers report monthly figures, industry watchers say March figures are a reason to be optimistic. That's because the numbers offer a snapshot of consumer spending, which accounts for more than 70 percent of all economic activity.

Overall, revenue at stores open at least one year, an indicator of a retailer's health because it excludes results from stores that opened during the year, rose 4.1 percent, according to a preliminary tally of 22 retailers by the International Council of Shopping Centers. That figure is within the range of the group's March estimates, but several retailers from luxury chain Saks to food and fragrance retailer Limited Brands, had monthly gains that beat their own expectations.

The strong sales were buoyed by unseasonably mild weather and a flurry of positive economic news.

"Not only did we have nice weather, we've also taken a bit of a breather from the shocking economic news that we have had," said Laura Gurski, a partner and global head of A.T. Kearney's retail practice. "There's a calming down or feeling that the economy is settling in and starting to trend more positive from an American standpoint."

In Las Vegas, Zohar Lotem, co-owner of Arm Candy, an accessories store at the Miracle Mile Shops, has seen sales increase 50 percent since January.

"Sales are better. In general, everything is better," Lotem said. "We don't need a special deal or special price. People are just buying."

Lotem expects business to continue to improve through the summer, a time when he says shoppers are more willing to spend.

At Pinto Ranch, an upscale Western wear store inside the Fashion Show mall, sales primarily are driven by special events, not the weather.

"Any Western-themed entertainer that comes to town, we do great. Last week, with the Country Music Awards, that was a huge week," company President Walter Pye said. "It's a great store for us."

Jamie Whittier, an account manager from Connecticut, said the improving economy has made it easier for her to shop, including picking up a neon shift dress from Ann Taylor and bright pencil skirts from ASOS.

"I definitely feel the economy is in better shape than last year," she said.

For Sarah Lippman, the weather was the biggest motivator to shop.

"I was ready for a wardrobe pick-me-up," said the 28-year-old New Yorker who bought a leather jacket at Nordstrom.

Clothing chains benefited from heavy demand for spring fashions.

"Stores are showing something new and different from a fashion perspective, and that's getting people into the stores," said Alison Levy, senior manager at consulting firm Kurt Salmon.

Macy's, which owns the Macy's and Bloomingdale's department chains, continued its strong monthly performance, reporting that revenue figures rose 7.3 percent, which beat analysts' expectations of a 4.8 percent rise.

As a result, the company raised its forecast for revenue 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, which had been struggling, 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 rose 8 percent, better than the 5.4 percent rise expected analysts polled by Thomson Reuters.

Las Vegas Review-Journal writer Laura Carroll contributed to this report.