Sector Snap: Dept. stores up despite weak October

According to a poll by Thomson Reuters, department stores overall reported same-store sales fell 11.7 percent in October, while analysts expected a 10.9 percent drop.

Department stores have been among the hardest hit in the retail sector as consumers cut back on spending amid financial-market turmoil, a shaky job market and prolonged housing slump.

Investors, however, seemed unfazed by the results and shares mostly rose.

J.C. Penney Co. said October same-store sales fell 13 percent, just besting the 13.2 percent drop analysts projected. But the retailer said it expects a big drop-off in November sales and reduced its profit outlook for the third quarter. Shares rose 95 cents, or 4.3 percent, to $23.15 during morning trading.

Kohl's Inc. said same-store sales fell 9 percent in October, while analysts expected a smaller 6.4 percent decline. Shares rose 77 cents, or 2.3 percent, to $34.10.

At Dillard's Inc., same-store sales fell 8 percent, while analysts expected a larger 13 percent drop. Shares rose 4 cents to $5.03.

Department store operator Macy's Inc. said Thursday that same-store sales fell 6.3 percent in October and are likely to drop in both the third and fourth quarters in the tough retail environment. Shares fell 5 cents to $10.80.

Luxury department store Saks Inc. said October same-store sales fell 16.6 percent, worse than the 11.8 percent fall analysts predicted. Shares rose 4 cents to $5.49.

Same-store sales, or sales in stores open at least one year, are a key metric of a retailer's performance because they measure growth in established stores rather than newly opened ones.