Holiday Kickoff Helped Retailers

Several U.S. retailers reported higher-than-expected sales for November, confirming a strong start to a holiday shopping season that could determine whether the U.S. economic recovery has legs. Not only were there more shoppers on Black Friday -- the annual discount bonanza following U.S. Thanksgiving -- but retailers also benefited as more people bought for themselves, promotions were less aggressive than last year and weather cooled after a mild October. Same-store sales, or sales at stores open at least a year, are a closely watched gauge of retail performance and offer an early look at the strength of the shopping season, which can account for as much as a third of a retailer's annual revenue. Consumer spending also equals about 70% of the U.S. economy, so this year's holiday sales season is being closely watched to determine if the economic recovery can pick up steam. After only a handful of sales reports, Costco Wholesale Corp COST, Zumiez Inc ZUMZ and Hot Topic Inc HOTT reported better-than-expected November sales. Eight of the 11 retailers that reported sales so far beat Wall Street expectations, according to Thomson Reuters data. Continue reading the article.