Gap shares rise 7 per cent after February sales

Published:  2 Mar at 6 PM

As reported by the BBC, shares in clothing company Gap went up 7% after reporting strong sales for February. Abnormally warm weather has persuaded American shoppers and the company said its spring items have been selling very well. With sales growing 12%, the firm’s Banana Republic chain also had a particularly strong month.

After a slow holiday season, Target announced a 7% jump in February sales, making it one of its strongest months since 2007. The firm said customers were spending more on its health care and food products.

February was also a lucrative month for Limited Brands, which reported an 8% rise in store sales. The company also owns Bath and Body Works and Victoria's Secret. Consumer spending makes up nearly 70% of the United States’ economic activity, explaining why economists are closely watching the prosperity of big retailers.

Ken Perkins, who is president of research company Retail Metrics, said February was a particularly strong month as a second wind had been breathed into the big retailers. Consumers are beginning to feel a lot better overall about their economic situation, he explained.