Retail results disappointing

NEW YORK — The traditional excuse for disappointing retail sales in February — cold weather — may not be enough to explain sluggish results posted by U.S. merchants from Gap Inc. to AnnTaylor Corp. Unappealing fashions may also have something to do with it.

As merchants reported their sales results Thursday, the disappointments went beyond the usual stragglers like Gap and included stores like teen stalwart Abercrombie & Fitch Co. Bebe Stores Inc. reported its first monthly decline in 46 months, blaming the weakness on not having enough trendy tops.

Wal-Mart Stores Inc., which reported continuing problems with its apparel offerings, had sales below analysts' estimates.

High-end stores like Nordstrom Inc. were among the bright spots, but analysts say stores catering to the middle- to lower-income shopper might suffer more as the economy continues to slow.

"February can be a treacherous month from a weather standpoint," said Michael C. Appel, managing director of Quest Turnaround Advisors LLC. But the big problem, he said, was the merchandise.

Marshal Cohen, chief analyst at NPD Group Inc., a Port Washington, N.Y., market research company, agreed, saying, "The weather is a good excuse, but the truth is weather is one direction. Another direction is merchandise."

Cohen noted that retailers' biggest mistake is that stores are not in step with customers' penchant for buying clothing to be worn immediately; merchants display the new merchandise well ahead of when

the season begins. The late arrival of winter weather helped clear out cold weather items and boosted sales in January. But that meant there was little for shoppers to buy last month, as they had little interest in spring wear.

Another problem, Cohen said, is that fashion has become "too commoditized." This season's fashions — 1960s mod looks like baby doll tops and mini dresses in geometric patterns — are being offered everywhere at every price point, he noted. Not to mention that some experts doubt whether these looks will have broad-based appeal.

Retailers also are grappling with a slowing economy, particularly a weakening housing market, that could challenge shoppers in the months ahead. Ken Perkins, president of RetailMetrics LLC, a research company in Swampscott, Mass., said defaults and delinquencies in the mortgage industry — coupled with the decline of mortgage equity withdrawals that give consumers extra cash — could curtail spending.