Federated Denim Glut

Cincinnati, Federated retail brands, among them Macy’s and Bloomingdale’s, may soon be facing the same denim glut that has caused retailers like Gap and Limited to discount jeans.

According to a Legg Mason analyst, retailers like Federated and American Eagle responded to a surge in popularity for torn, embroidered and paint-splattered styles last year and bought on average 10% more denim apparel this season.

But sales in August and September, the biggest selling season after Christmas, are expected to be in the 5% range, according to the International Council of Shopping Centers, down from an initial forecast of as much as 6%.