Retailers report weak sales

Thursday, Dec. 6, 2001 | 10:04 a.m.

NEW YORK -- Fears of a dismal holiday shopping season deepened today as the nation's big retailers said their November sales dropped short of expectations. Even big discounts failed to move wary consumers, and unseasonably warm weather only made matters worse.

Discounters and other value-oriented stores, particularly Wal-Mart Stores Inc. and Costco Wholesale Club, had the strongest results as consumers, worried about job security, shopped cautiously. Mall-based merchants, particularly apparel and department stores, suffered.

Most notably, Gap Inc., whose business has dropped precipitously, saw its sales at stores open at least a year, known as same-store sales, plummet 25 percent, worse than the 17 percent decline analysts expected.

Gap warned that fourth-quarter earnings would be "considerably worse" than the 6 cent per share loss reported in the third quarter, excluding a tax-related charge.

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