Retailers report disappointing sales

Gap, JC Penney among holidays' bright spots

? Consumers penny-pinched their way through the holiday season, the nation’s retailers confirmed Thursday as they announced disappointing sales for December.

Economic uncertainty, along with a short season and a lack of must-have items, stalled sales in all types of retailing, including the usually strong discounters, such as Wal-Mart, Kohl’s and Target.

Many mall-based apparel stores, particularly Talbots and AnnTaylor, also had a difficult season.

There were a few success stories, however. The resurgent Gap Inc. announced better-than-expected results, as did teen retailers Hot Topic and Pacific Sunwear of California.

J.C. Penney, benefiting from a fashion makeover, also turned in better-than-expected sales at department stores that had been open for at least a year, known as same-store sales. Same-store sales are considered the best indicator of a retailer’s health.

“I think, in the near term, there will be a continuation of a struggle in the retail industry,” said Michael P. Niemira, vice president of Bank of Tokyo-Mitsubishi Ltd. The possibility of war with Iraq and the nation’s shaky economy likely will remain obstacles this year, he said.

The disappointing news followed a Labor Department announcement that new claims for unemployment benefits dipped last week. For the week ending Jan. 4, jobless claims fell by a seasonally adjusted 19,000 to 389,000, the lowest level since Dec. 21. The decline came after new applications for unemployment benefits increased by 19,000 the previous week.

Some December sales figures reported by retailers:

Shoppers browse merchandise inside a Brooks Brothers clothing store. Retailers reported Wednesday that the holiday shopping season was disappointing. Even discounters such as Wal-Mart and Kohl's announced a lackluster December.

  • Wal-Mart: Same-store sales up 2.3 percent, below both Wall Street’s reduced estimate of a 2.6 percent gain and Wal-Mart’s earlier projection of a 3 percent to 5 percent gain. Total sales up 9.5 percent.
  • Target: Same-store sales down 0.3 percent, in line with reduced Wall Street expectations but well below Target’s original expectation of a 3 percent to 5 percent gain. Total sales up 7.6 percent.
  • Kohl’s: Same-store sales up 3.3 percent, below the 6 percent gain Wall Street anticipated. Total sales up 19.4 percent.
  • J.C. Penney: Same-store sales at department stores up 4.7 percent; total sales up 0.6 percent.
  • Sears, Roebuck: Same-store domestic sales down 4.6 percent; total sales down 2.6 percent.
  • Gap: Same-store sales up 5 percent, above Wall Street expectations of a 3.6 percent increase. Total sales up 10 percent.
  • Talbots: Same-store sales down 9.1 percent; total sales down 3 percent.
  • Hot Topic: Same-store sales up 10.6 percent; total sales up 36 percent.
  • Pacific Sunwear of California: Same-store sales up 16.1 percent; total sales up 28.7 percent.