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: