January Retail Sales: A Mixed Bag

Here is a look at how some of the retailers January comp sales came in:

Better-than-expected results:

• ARO (+4.7% vs. +3.3% estimates)
• BJ (+7.8% vs. +4.6%)
• PLCE (+6.0% vs. +3.0%)
• COST (+7.0% vs. +6.6%)
• GPS (-2.0% vs. -6.4%)
• HOTT (-3.6% vs. 6.7%)
• JCP (-1.9% vs. -6.1%)
• SKS (+4.1% vs. +3.2%)
• ZUMZ (+1.7% vs. +1.5%)

Worse-than-expected results:

• AEO (-7.0% vs. -3.1%)
• CHS (-22.1% vs. -11.4%)
• DDS (-12.0% vs. -5.0%)
• KSS (-8.3% vs. -7.8%)
• LTD (-8.0% vs. -7.3%)
• JWN (-6.6% vs. -0.6%)
• PSUN (-7.4% vs. +1.3%)
• TGT (-1.1% vs. -0.7%)
• WMT (+0.5% vs. +2.1%)

Despite many below average results, the retail sector is the strongest sector in the market today. That usually means that the stocks have discounted all the bad news for the time being, and should enjoy a relief rally.

Look at most of the stocks from the "worse-than-expected" list and you'll see that even those stocks are up on the day. I don't own many retailers right now, but I have to admit a lot of them look good for a trade here.