Gap, Other Specialty Apparel Retailers Post Declines in December

New York City The sharp decline in non-discretionary spending continues to take a heavy toll on the nation’s specialty retailers, many of whom reported dismal same-store results for December. Gap Inc. Thursday said its same-store sales for the month of December dropped 14%, worse than analysts' consensus forecast, reflecting a sharp drop in consumer traffic at the beginning of the month.

By division, same-store sales at Gap stores in North America fell 12%, while Banana Republic North America lost 15% and Old Navy North America tumbled 16%. International same-store sales dipped 5%.

Net sales in December fell 12% to $1.93 billion from $2.20 billion in the prior-year period.

Abercrombie & Fitch Co., one of the few retailers who did not offer deep discounts during the holiday selling period, said its December same-store sales fell 24%. Analysts, on average, had expected same-store sales to fall 23.5%. Net sales for the five weeks ended Jan. 3 fell 11% to $45.6 million.

In other results:

• American Eagle Outfitters Inc. slashed its fourth-quarter guidance and reported a worse-than-expected 17% drop in its December same-store sales. The chain cited weak customer traffic and poor sales of its namesake brand clothes during the holiday period.

• Wet Seal Inc. said Thursday that same-store sales fell 12.5% in December, a larger drop than analysts were expecting as its Arden B chain dragged down results. Same-store sales fell 6.6% at Wet Seal stores and 36.9% at Arden B.

•  Limited Brands Inc. said same-store sales fell 10% in December, a bigger drop than analysts predicted.

• Cato Corp.’s same-store sales declined 2% in December, as the slow economy hurt sales, but said quarterly results should meet or beat its previous guidance. Total sales for the five weeks ended Jan. 3 rose 2% to $96.1 million from $94.6 million in the five weeks ended Jan. 5, 2008.