NEW YORK (AP) - Dismal September sales results from mall-based apparel chains, released Thursday, offered more fresh evidence that American consumers, spooked by the financial meltdown, shut their wallets tight last month.
The reports fueled more worries about the holiday shopping season, which was already expected to be bleak.
As results trickled in Thursday from merchants, even TJX Cos.—which offers discounts on designer brands and had been one of the few bright spots in apparel selling—was not immune to the mounting economic woes. The Framingham, Mass.-based retailer, which operates such chains as T.J. Maxx and HomeGoods, lowered its profit outlook as it reported an unexpected drop in sales at established stores.
Others such as Gap Inc., Abercrombie & Fitch Co. and Chico's FAS Inc., which had been mired in a sales slump for months, fared far worse, reporting double-digit same-store sales declines. Same-store sales are sales at stores opened at least a year and are considered a key indicator of a retailer's health.
The reports came a day after many major retailers, including Wal-Mart Stores Inc., the world's largest retailer, Target Corp. and department stores such as J.C. Penney Co. and Saks Inc., which operates Saks Fifth Avenue, reported their September results on Wednesday. Many retailers reported a day earlier than usual because of the Yom Kippur holiday Thursday.
Wal-Mart was among the few winners, posting a modest sales gain, but even its results were a bit below analysts' estimates, indicating that shoppers are sticking to bare-bone necessities.
"This is very worrisome. It really puts a gloomy feeling as to what can happen for the holiday season," said Jharonne Martis, an analyst at Thomson Reuters.
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http://ap.google.com/article/ALeqM5iUDvPEJ3EGEZ-t-4PjFke9ELUiuQD93N26C80
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