10 Superstars of Retailing Beat the Downturn

By  Christina Zarrello
As shoppers cut back on all but the most vital purchases in the economic downturn, some retailers have beat the odds and have discovered the winning formula for success. Ten retailers including BJ's, Walgreens and Hot Topic continue to post higher than expected financial results, announce store expansion plans and remain poised for future success as we enter 2009. RIS News highlights 10 surprisingly successful retailers that are surviving and thriving in one of the toughest economic climate in years.

BJ's: The warehouse club announced that profits jumped 24.4 percent in its third quarter as shoppers hunting for bargains on food, gasoline and other staples flocked to the warehouse club. Sales increased 13.4 percent to $2.46 billion while same store sales climbed 11.9 percent. The warehouse club attributes everyday staples such as coffee, dairy and produce for its strong sales. BJ's also announced that it plans to open six to eight new stores in existing markets in 2009.

Walgreens: The retailer leads the drugstore sector in sales and profits with 1,600 24-hour stores, 6,237 outlets, convenient locations and easy online access. The retailer reported October sales of $5.16 billion, up 6.8 percent from the same period in 2007 when sales were $4.83 billion. October front-end sales were helped in part by strong sales of consumables and key beauty items. Walgreens opened 71 stores during October, including seven relocations and acquired one store.

Children's Place: Third-quarter net income nearly doubled compared with the prior-year period, due in part to gains from its exit from The Disney Store chain. Net income for the quarter climbed to $24.1 million from $12.3 million for the third quarter of 2007. Sales at stores open at least a year rose 2 percent for the quarter, compared with 1 percent in the third quarter of 2007. Sales increased 5 percent to $450.6 million.

Polo Ralph Lauren: The retailer announced that fiscal second quarter profit jumped 40 percent after gains in Europe and its discount outlets helped to make up for lower U.S. department store demand. Polo Ralph Lauren reported net income of $161 million for its second quarter of fiscal 2009, compared to net income of $115 million for the second quarter of fiscal 2008.

Dress Barn: The woman's apparel chain reports that net sales for its fiscal first quarter ended October 25, 2008 increased 3 percent to $376.4 million compared to net sales of $363.7 million for the fiscal first quarter ended October 27, 2007. By division, net sales at Dress Barn stores increased 2 percent while net sales at maurices stores increased 6 percent.

Hot Topic: The teen apparel retailer announced that profits rose 11 percent in the third quarter ended November 1, 2008 and sales increased 5 percent. Revenue rose $197.3 million from $188.5 million. Same-store sales rose 1 percent in the quarter. The company said its Torrid stores saw a 13.2 percent rise in sales to $37.6 million, while sales at Hot Topic's namesake stores rose 2.9 percent to $159.7 million.

The Pantry: The convenience store operator posted net income of $23 million for the year ended September 25, 2008, which is more than four times the profit of $5.6 million reported for the year-ago quarter. Net income climbed 18.9 percent to $31.8 million. Revenue rose by 30.2 percent to $9 billion. The retailer attributes that a spike in gasoline revenue fueled big increases in total sales and earnings during its fiscal fourth quarter.

Gymboree: The children's retailer reported that net sales from retail operations for the fiscal quarter ended November 1, 2008 totaled $261.3 million, a 6 percent increase over $247.6 million for the third fiscal quarter of the prior year. Total net sales for the third fiscal quarter were $264.1 million, compared to total net sales of $250.7 million for the same fiscal quarter last year.

Ross Stores: The retailer reported that third quarter profit rose 18 percent based on solid inventory management and cost-cutting. Net income for the company rose to $57.3 million for the quarter ended November 1, 2008 from $48.7 million last year. Sales increased 6 percent to $1.56 billion while same store sales were flat.

True Religion: Apparel retailer reports record breaking net sales of $79.4 million in its third quarter ended November 6, 2008, an increase of 63.9 percent from $48.4 million in the third quarter of 2007. Net sales for the consumer direct segment, which includes the company's branded retail stores and e-commerce site, faced triple-digit increases of 198.2 percent to $21.5 million from $7.2 million in the prior year period.

For more recent retail success stories see:

Surprising Success: 10 Retailers Continue to Grow in Tough Times