Warm weather forced consumers out of their homes and into the malls in June, as the long-overdue shift in the weather sent people to stores to buy shorts and other summer-related goods.

“Consumers went on a spending spree in June as demand for seasonal goods finally stirred spending,” said Michael Niemira, chief economist and director of research at the International Council of Shopping Centers, “…it appears that the retail 'stars' are aligned for positive sales growth during the second half of 2005.”

According to an ICSC survey of 70 chain stores, June's chain store sales rose 5.3% year-on-year, which was described as the strongest performance since May 2004 when sales rose 5.7% for the month. While an easier anniversary month in June of last year played a role in the gain, ICSC also pointed to an SDI/WeatherTrends report that indicated the bulk of the U.S. market, with the exception of the Far West and the Deep South, experienced a month that ranked among the 10 hottest June’s on record.

The “Luxe” retailers again led the market as a category with a combined 7.2% increase for the month, with Neiman Marcus, Nordstrom, and Saks Fifth Avenue all posting increases that outpaced the balance of the department store sector. Wholesale clubs weren’t far behind, rising 6.6% as a sector thanks to Costco’s impressive 9.0% increase for the month. Discount stores rose 5% as a group, with Target posting a 9.0% gain on top of a 6.0% increase in June last year.

The footwear store sector looked like a weak player for the month, but a closer look finds solid gains across the business with the exception of PSS.

Shoe Carnival continued on its positive roll for the month of June, posting a 6.7% comp store gain for the period. Total sales for the five-week period increased 12.0% to $54.4 million, compared to $48.6 million for the year-ago period. Athletic footwear played less of a role in the gain for the period, with the biggest increases coming from women’s dress and casual, men’s casual, and children’s non-athletic. The southern stores continue to outperform the northern stores, with the south comping up 10% and the north comping up 3.9% for the period.

The women’s business was up in the high-teens and the men’s business was up in low double-digits. Children’s, including the athletic component, was up in low-singles. Men’s and women’s athletics were both up in low-single-digits. Total footwear was up 7.0%, but accessories were flat.

Management said they increased the promotional cadence on their sandal inventory in June, which added some lift to sales for the category. The women’s sandal inventory, which SCVL sees as the “highest fashion risk,” was just “slightly higher” than last year. The increased markdowns are expected to have a negligible impact on margins for the quarter. June margins were higher than the year-ago period.

Based on the strength of June sales, SCVL now expects diluted EPS to be in the 21 cents to 22 cents per share range in the second quarter.

DSW, Inc. reported its first month of sales as a stand-alone public company, posting a 7.7% same-store sales increase for the month of June. Sales increased 23.1% to $106.4 million from $86.4 million for the year-ago period.

Payless Shoe Source kept the family footwear channel positive for the month, reporting a 1.7% same-store sales increase for June, but total company sales declined 0.3% to $275.8 million, compared to $276.6 million for June 2004.

Apparel stores were up 4.7% as a sector, led by another stunning performance at Abercrombie & Fitch. The former division of Oshman’s posted a 38% increase for the month to follow up their 29% gain in May and a 16% increase in April. American Eagle is also on a roll that seems to be coming at the expense of the Gap.

Pacific Sunwear of California got some energy back with the warmer weather in June, reporting a consolidated comp sales gain of 4.5% for the period. Total transactions per store were down in mid-single-digits for the month, but the average transaction size per comp store was up in low-double-digits, driven by a low-double-digit increase in average unit retail. Total sales increased 14.5% to $120.6 million for the month.

The PacSun stores easily outpaced the total company performance for the month, generating a 4.9% gain for June. d.e.m.o. comps were up just 0.5% for the period. The guys business was up in mid-singles for the month on strength in denim, swimwear, shorts, knits, T’s, sneakers, belts, and bags. The girl’s business, which was up in low-singles, got a lift from swimwear, board shorts, T’s, and skirts. Girl’s accessories comps were said to be “weak.” At d.e.m.o., the girl’s have pretty much taken over the store these days, posting a solid comp sales gain in the low 20’s that just barely offset a low-teens decline on the guy’s side.

Zumiez continued its string of impressive same-store sales gains, posting a 10.7% increase in June on top of a 9.0% increase in the year-ago period. The gain was attributed to a mid-single-digit increase in comp store transactions and a mid-single-digit increase in average unit retail. Total net sales for June increased 29.4% to $15.3 million, compared to $11.8 million for the year-ago period.

ZUMZ said that women’s apparel was the strongest positive contributor for the month, with men’s, footwear, and accessory comps also described as “strong.” Hardgoods had a “slight increase” for the month.

The Buckle reported that sales for June increased 9.6% to $38.0 million from sales of $34.7 million in June last year. Comparable store sales increased 4.4% on top of a 10.3% increase in June last year.

Mr. Niemira says he expects July's sales to climb by 4% to 5% year-on-year.