Weak Retail Numbers Portend More Earnings Weakness

As March sales figures trickle in Thursday from some of the lesser retail names, a grim picture for the nation's merchants is emerging.

A week before the country's top retailers release March same-store sales figures, which gauge activity in shops open at least a year and are a key barometer both of the health of the consumer sector and the attractiveness of retail stocks, companies such as Guess? (GES Quote), Footstar (FTS Quote), Dress Barn (DBRN Quote) and Neiman Marcus all reported dismal sales for March.

In a statement typical of what many retail executives have been saying amid the faltering economy, Neiman Marcus co-chief executive Brian Knez said: "March comparable revenues reflected what has become a very challenging retail environment. Volatile financial markets during March exacerbated an already difficult comparison against double-digit revenue gains a year ago." ...