Not So Fast…Holiday Sales Trail Expectations

Two months ago, most U.S. retailers were expecting a slight increase in sales in the neighborhood of 2%. But as Thanksgiving neared here in the States, pundits suddenly were projecting bigger gains and optimism grew that Holiday 2010 would prove bountiful for everyone.

But now, all that may be wishful thinking, according to early results. U.S. retailers posted mixed December same-store sales results Thursday as the holiday season in many cases failed to live up to retailers’ highest expectations.

“After a strong start to the holiday season in November, sales and traffic trends for our brands were less consistent in December,” said Sabrina Simmons, chief financial officer of Gap Inc.

Gap was among numerous stores falling short of analysts’ expectations for the month, reporting a flat comparable-store sales performance for December versus expectations of a 2.6 percent increase. Gap stores in North American saw comps fall 8 percent and Old Navy’s contract 1 percent while Banana Republic was up 1 percent.

Macy’s Inc. and Dillard’s Inc. came out of the month with comp increases of 3.9 percent and 7 percent, respectively, but Macy’s results was below the 4.5 percent expected while Dillard’s exceeded the 3 percent gain forecast penciled in by analysts. The Bon-Ton Stores Inc. and Stage Stores Inc. moved ahead but less emphatically with increases of 0.1 percent and 1.9 percent, respectively.

Limited Brands Inc. generated a 5 percent comp gain for the month, led by Victoria’s Secret’s 8 percent growth.