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Specialty Retailers Saw Slowing Holiday Sales

Betsy Riley

Yep, it's that time of the month again. December same-store sales are out -- and they were disappointing for most specialty retailers, except for those that peddle electronics and gadgets.

First off, women's apparel retailers were mixed with shining results from Talbots(TLB Quote), which saw its December same-store sales rise 12.9% over the year-ago period, and AnnTaylor(ANN Quote) which saw sales fall 0.3%. Same-store sales are sales in stores that have been open at least a year.

The Limited (LTD Quote) reported flat sales for the month, while the lingerie company it has an 84% stake in, Intimate Brands (IBI Quote), saw sales drop 3%. First Call/Thomson Financial expected the Limited's sales to rise 3.8%.

Gap (GPS Quote) and Abercrombie & Fitch (ANF Quote) both saw same-store sales slide. Gap was off 6% (analysts were expecting Gap sales to fall just 2.8%), while Abercrombie dropped 11%.

Jewelers and mall staples Whitehall Jewellers (JWL Quote) and Zale (ZLC Quote) saw November and December sales down, 8.7% for Whitehall and 3.1% for Zale.

And even though upscale jeweler Tiffany (TIF Quote) saw sales increase 2% for the two months, it said fourth-quarter earnings will miss estimates. The company, which is synonymous with elegance and opulence, said its earnings will come in at 56 cents a share, well below the 20-analyst estimate of 64 cents.

Still, one segment of specialty retailers saw strength in December: gadgets and electronics. Sharper Image (SHRP Quote) said sales were 10% higher for the month, with help from online sales. Also, Brookstone (BKST Quote) rose 3.3% and Radio Shack (RSH Quote) bounced 8%.

Restoration Hardware (RSTO Quote), which almost fits into that category, but also boasts home furnishings and decorative hardware, saw a 5.7% increase over the nine-week "holiday" period.