Top 10 Mid-Year Retail Rock Stars

High unemployment and sluggish economic growth has politicians and economists (not to mention ordinary consumers) worried, but judging by mid-year financial reports, some retailers have found ways to prosper even in tough times. This mid-year snapshot of the RIS News Top 10 Financial Performers includes retailers who have managed dramatic, sometimes double-digit increases in key metrics, including overall sales, net income and comparable store sales.

The list, which includes Publix, JC Penney, Family Dollar, Amazon.com, DSW and West Marine, reveals some good news and, unfortunately for the industry, some bad news. The good news is that this Winner's Circle is populated by companies from several different verticals: supermarkets, department stores, e-tailers, apparel and specialty retailers. That's an indication that strong financial performance isn't limited to retailers in just a few key product categories, or those serving only a limited set of customer groups.

The bad news is that the corporate financial reports for the most recent quarter available, which served as the basis for this list, compare these retailers' performance in 2010 to the same period in 2009--a period when the U.S. as a whole was still deeply affected by the global recession. So at least in some cases, impressive performance this year might be more of a reflection of the truly tough year many retailers suffered in 2009.

Following is the mid-year list of Top 10 Financial Performers:

Amazon.com
For the quarter ended June 30, 2010, Amazon.com's net sales were up 41% compared to the same period in 2009, rising from $4.65 million last year to $6.56 million this year. Net income rose 45%, to $207 million in the 2010 period from $142 million last year. Jeff Bezos, founder and CEO of Amazon.com, said "We're seeing rapid growth in Kindle, Amazon Web Services, third-party sales, and retail. We're also encouraged by what we see in mobile. In the last 12 months, customers around the world have ordered more than $1 billion of products from Amazon using a mobile device." The company also reported that it is now selling more Kindle books than hardcover books, and that it sold three times as many Kindle books in the first half of 2010 as it did in the first half of 2009.

DSW Inc.
For the quarter that ended May 1, 2010, the footwear retailer earned net income of $30.2 million on net sales of $449.5 million, compared with net income of $7.1 million on net sales of $385.8 million for the same period in 2009. The 16.5% increase in net sales was accomplished with the help of a 16.2% same-store sales increase in the quarter, versus a decrease of 4.7% in 2009. For the rest of its fiscal year, DSW is projecting an annual comp store sales increase of approximately 6% to 8%.

Family Dollar Stores
Net income for the large discount department store chain increased an impressive 19% for the quarter that ended May 29, 2010, reaching $104.4 million, compared to net income of $87.7 million for the same period last year. The company's sales were approximately $1.997 billion, 8.4% higher than the approximately $1.843 billion during the same period in 2009. Comp store sales increased 7%, which the company attributed to increased customer traffic, noting that average transaction value for the quarter was flat. Chairman and CEO Howard R. Levine expressed guarded optimism for the next quarter, saying "the environment remains challenging for consumers, and customers continue to buy close to need." He said the next quarter is "off to a good start, with sales in comparable stores increasing an estimated 5.5% in June."

JC Penney
For the quarter ended May 1, 2010, JC Penney's net sales totaled $3.92 million, up a modest 1.15% from the $3.88 million during the same period in 2009. Comp-store sales also increased, by 1.3%. The explanation for the department store retailer's inclusion on the Top Performers list is its net income, which more than doubled, increasing 140% from $25 million last year to $60 million in 2010. "We know that our customers remain concerned about their budgets, however they respond well to merchandise that's new and trend-right at compelling prices," said Myron E. (Mike) Ullman III, chairman and CEO of JC Penney. "Our assortments are strong for the upcoming key appointment shopping periods, including back-to-school. We will also launch Liz Claiborne in almost 30 merchandise categories and MNG by Mango--both exclusive to JC Penney--for the fall," he added.

Luxottica
For the quarter ended June 30, 2010, the Milan, Italy-based owner of LensCrafters, Pearle Vision, Sunglass Hut and licensed brand stores increased net retail sales by 14.2%. Overall, the company, which also sells wholesale eyewear, had its strongest quarter ever for both sales and profit, with over 30% net income growth. Total (wholesale and retail) North American sales for the quarter hit $1.2 billion, an 8% increase over the comparable period in 2009. Comp store sales increases in North America ranged from a high of a 9.6% increase in Luxottica's licensed brand stores, through a 3.5% increase at LensCrafters to a 0.7% decrease at Pearle Vision. Worldwide, Sunglass Hut's comp-store sales increased 4.6% during the quarter.

Macy's Inc.
Net sales for the quarter ended May 1, 2010 reached $5.5 billion for Macy's Inc., which now encompasses 850 stores under a number of banners. This was a 7.2% increase over the same period in 2009; comp store sales increased 5.5% during the same period. Like JC Penney, Macy's inclusion is due to its impressive resilience in the net income metric: From a loss of $88 million in the 2009 period, the retailer achieved $23 million in net income during the 2010 quarter. The retailer also posted impressive e-commerce numbers, with online sales for macys.com and bloomingdales.com rising 34% during this quarter.

Publix
For the quarter that ended June 30, 2010, Publix Super Markets achieved net earnings of $348.4 million, up from $300.8 million in 2009, an increase of 15.8%. The employee-owned grocery retailer had second-quarter sales of $6.2 billion, up 3.4% from the $6 billion during the same period last year. Comp-store sales increased 2.4%, a respectable showing in the notoriously thin-margin supermarket vertical.

Staples
For the quarter that ended May 1, 2010, office products retailer Staples earned net income of $189 million, an impressive 32% increase over the same period in 2009, when the retailer's net income was $143 million. Sales increased 4.1% from 2009 to 2010, rising from $5.8 billion to $6.0 billion this year. Sales for North American retail only were $2.3 billion for the quarter, an increase of 6%, with only a modest 1% increase in comp store sales. The retailer opened 20 stores and closed three locations, ending with 1,888 stores in North America.

TJX
The off-price apparel and home fashions retailer had net sales of $5 billion in the quarter that ended May 1, 2010, a 15% increase over the same period in 2009. Comp store sales also climbed dramatically, increasing 9%. The retailer's net income showed the strongest results, increasing 58%, from $209 million for the quarter in 2009 to $331 million this year. President and CEO Carol Meyrowitz credited increased customer traffic and consumers still on the lookout for value.

West Marine
The boating supply and accessories retailer had net income of $35.8 million for the quarter that ended July 3, 2010, an 8% increase over the $32.4 million for the same period in 2009. Comp store sales increased a respectable 9.4% during the same period. CEO Geoff Eisenberg said "I think it's noteworthy that Q2 of 2010 was the seventh consecutive quarter in which we delivered improved operating results versus the corresponding quarter of the previous year. We are pleased with these results, especially since the second quarter is West Marine's busiest of the year."