NEW YORK (TheStreet) - A massive winter storm, dubbed Hercules, put a halt to Friday's commuting and regular work for millions of Northeast residents in what may translate into fewer shopping days over the first weekend of the new year.
Citigroup analyst Oliver Chen estimates that the storm, the first of 2014, will lower fourth-quarter retail sales by 1% with the biggest impact to retailers with a high concentration of stores in the Northeast. Vera Bradley (VRA), TJX (TJX) and American Eagle Outfitters (AEO) are chief among those most likely to be hurt by the storm, Chen wrote in a note to clients Thursday evening.
"We are expecting retail shoppers to stay home Thursday-Saturday and expect ~1% negative impact on 4Q sales given forecasts for major snowfall, high winds, and freezing temps," Chen said. "We expect a retail carryover impact on Saturday givencolder than normal air is expected to follow the storm in the Northeast."
As of Friday morning, the storm had dumped roughly two feet of snow in the Boston area, shutting down hundreds of flights out of Logan Airport as well as JFK and LaGuardia. The governors of New York and Pennsylvania also shut down major highways, according to the Associated Press.
The storm follows a mostly disappointing holiday season in which retailers had to rely on massive promotions to lure shoppers to the stores, thereby cutting into margins and fourth-quarter earnings, the most important quarter of the year for most retailers. Chen estimates retailers generate approximately 55% to 65% of the quarter's revenue in December for the January-ending quarter.