US retailers reporting weak holiday season results - Yahoo NewsNew York (AFP) - Victoria's Secret pa...

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US retailers reporting weak holiday season results - Yahoo News
New York (AFP) - Victoria's Secret parent L Brands and home decor chain Pier 1 Imports joined
other retailers in slashing profit forecasts Thursday following disappointing holiday sales.
The two cited heavy discounting, higher marketing costs and poor weather over the late-November
to December gift-buying season in the United States, following similar poor reports from Bed, Bath
& Beyond and Family Dollar.
Shares of both companies moved sharply lower. While there have been a few winners, analysts said
the generally poor early post-holiday commentary so far suggests the 2013 holiday shopping season
was even weaker than expected.
"We were cautious heading into the holiday season," said R.J. Hottovy, senior retail analyst at
Morningstar.
But the surprisingly bad results from Bed, Bath & Beyond and others suggests "the pressures were a
lot more widespread than we initially thought," Hottovy said.
A bright spot was the rise of online retail, Hottovy added.
View gallery
Pedestrians walk by a Gap store on
February 7, 2013 in San Francisco City (AFP Photo/Justin Sullivan ...
L Brands, which also owns the Bath & Body Works chain, said comparable store sales increased ju 2
percent during a five-week holiday period ending January 4. It cited "incremental promotional
activity" that depressed profit margins.
Pier 1 said comparable stores sales for December sank 5.7 percent, due mainly to bad weather that
depressed store traffic.
"Our holiday assortments were excellent and our execution both in-store and online was first class "
making it all the more upsetting to have our results impacted by forces beyond our control," said
chief executive Alex Smith.
Shares of Pier 1 sank 12.4 percent, while L Brands fell 4.1 percent.
Bed Bath & Beyond, a home furnishing and appliance store, plummeted 12.5 percent after

2. announcing that earnings for the fiscal third quarter, which ended November 30, missed
expectations and the fourth-quarter profit outlook had declined.
View gallery
Shoppers leave a Costco Wholesale Club
store in Manassas, Virginia on October 16, 2012 (AFP Photo/Ka ...
Another disappointment came from Family Dollar Stores, which declined 2.1 percent after earnings
underperformed in its fiscal first quarter, ended November 30. The company also sharply cut its fullyear forecast.
"Many of the top-line challenges we faced in the first quarter, including a challenged consumer and
an intensified promotional environment, have continued to impact our business," said chief executive
Howard Levine.
Hottovy said the results suggest many consumers are still struggling with higher payroll taxes, a
tough employment market and concerns about higher health care costs.
"It's still kind of a sluggish recovery if you look where the average US consumer is," Hottovy said.
There have been a few bright spots in recent days, suggesting a few winners in the holiday shopping
bonanza.
Costco Wholesale jumped 3.9 percent after announcing that comparable store sales rose 3 percent
for the five-week period ending January 5.
Gap rose 1.9 in post-market trade Thursday after it reported a 1 percent rise in comparable store
sales for the holiday shopping period.
Macy's soared 7.6 percent higher after confirming its 2013 earnings forecast and giving a bullish
outlook for 2014 following a "successful" holiday shopping season.
But not all of the Macy's news was good: the company also announced plans to cut 2,500 jobs in a
reorganization.
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