Apparel results mixed in March

NEW YORK March was a challenging month for apparel retailers, with most companies reporting anticipated declines, although standouts included The Buckle and Hot Topic, where sales were higher than analysts expect. At The Buckle, March same-store sales spiked 14.7%, and so far this year the company's same-store sales are up 17.4%. March sales growth at Hot Topic wasn't quite as strong, but the company managed a 7.1% increase, due in part to a non-apparel event, as it reported strong sales of the Twilight DVD. Also in positive territory was Aeropostale, which reported a 3% same-store sales increase.

One of the biggest losers in March was Abercrombie & Fitch, where same-store sales declined 34%. Other apparel retailers such as American Eagle Outfitters, Wet Seal, Limited Brands and Gap reported declines of 16%, 11.4%, 9% and 8%, respectively.

These are tough times at the mall where specialty apparel retailers, in addition to department store chains, are chasing after a smaller number of customers, who even in the best of times are notoriously fickle. What's amazing though is the clear distinction between the winners and losers now being drawn, as The Buckle managed to produce a 14.7% gain compared with a staggering 34% decline at Abercrombie & Fitch. As consumers have less money to spend, or are unwilling to part with what money they do have, the next several months promise to be challenging for specialty apparel leading in to what could be a particularly brutal back-to-school season later this summer.