AUGUST 2003 SAME STORE SALES REPORT

Industry Sector: Retail


Welcome to the new Global Credit Services “Interactive Graph Interface”. This new graph enables the user to plot a company’s performance against the best and worst performers in retail over the last two years. The Best of Breed may be a different company each month from those retailers who report monthly comparable store sales. This Interactive Graphing product allows the user to click on any company in the report and that company’s results gets charted against the best and worst performers over this time period.

Ind Cred Company YTD Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Aug 2003 Aug 2002 Aug 2003 Aug 2002
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     



Companies Ranked by Industry

Credit
Rating
Apparel Stores Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Aug 2003 Aug 2002 Aug 2003 Aug 2002
A  CHICOS FAS INC  19.40  13.70  56.30  39.50  43
B  PACIFIC SUNWEAR OF CALIFORNIA INC  15.60  12.90  136.70  110.20  24
A  HOT TOPIC INC  11.80  5.30  61.50  46.80  31
A  MENS WEARHOUSE INC,THE  8.80  -12.70  85.00  78.50  8
D  JOS A BANK CLOTHIERS INC /DE/  8.60  14.60  17.40  14.30  22
C  ANNTAYLOR STORES CORP/HC  8.20  -7.60  104.60  88.60  18
B  CLAIRES STORES INC  8.00  5.00  87.66  77.90  13
A  BEBE STORES INC  7.90  -17.60  30.10  26.20  15
A  S & K FAMOUS BRANDS INC  7.00  -4.00  10.60  9.90  7
F  FILENES BASEMENT CORP/SEE SCHOTTENSTEIN  5.80  0.30  24.76  23.13  7
B  CACHE INC  5.00  2.00  13.40  12.30  9
D  GAP INC,THE  4.00  -2.00  1220.00  1160.00  5
C  FAMOUS FOOTWEAR  2.00  -1.40  135.80  131.00  4
C  ROSS STORES INC  2.00  6.00  315.00  279.00  13
B  AEROPOSTALE INC  1.60  6.60  87.40  69.20  26
B  CHILDRENS PLACE RETAIL STORES  1.00  -16.00  66.70  57.10  17
C  TJX COMPANIES INC  1.00  2.00  995.00  920.00  8
D  GOODYS FAMILY CLOTHING INC  0.03  -7.60  87.10  86.60  1
B  BUCKLE INC,THE  -0.60  -3.60  48.10  46.70  3
A  CHRISTOPHER & BANKS CORP/FKA BRAUNS FASHIONS  -1.00  5.00  27.30  23.40  17
B  DRESS BARN INC  -1.00  -2.00  50.60  49.50  2
B  MOTHERS WORK INC / MOTHERHOOD MATERNITY  -1.70  9.10  41.70  37.80  10
C  LIMITED BRANDS INC  -2.00  1.00  575.70  642.80  -10
A  GYMBOREE CORP  -3.00  3.00  42.80  41.90  2
F  FACTORY 2 U STORES INC/ FKA FAMILY BARGAIN CORP  -4.80  -10.70  46.00  49.20  -7
D  CHARMING SHOPPES INC  -6.00  -1.00  166.00  178.10  -7
11  SPIEGEL INC/CASE #03-11540  -7.00  -18.00  104.40  149.60  -30
11  EDDIE BAUER INC/CASE#03-11547  -7.00  -18.00  0  0  0
D  STEIN MART INC  -7.10  0.60  92.90  98.10  -5
E  WILSONS THE LEATHER EXPERTS INC  -7.30  -2.50  22.40  31.60  -29
E  UNITED RETAIL GROUP INC/DE  -8.00  2.00  24.90  27.30  -9
B  TALBOTS INC  -8.70  -4.10  87.80  90.00  -2
B  CATO CORP  -9.00  -3.00  48.80  50.50  -3
B  AMERICAN EAGLE OUTFITTERS INC  -10.40  -6.90  155.60  156.50  -1
C  WET SEAL INC  -10.70  -12.00  50.40  54.00  -7
A  ABERCROMBIE & FITCH CO  -11.00  -3.00  190.40  185.20  3
B  DEB SHOPS INC  -15.10  -1.40  30.30  34.30  -12
F  BOBS STORES INC  -23.96  1.68  34.70  45.50  -24
D  GADZOOKS INC  -33.60  -6.40  20.00  30.50  -34

Credit
Rating
Consumer Electronics Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Aug 2003 Aug 2002 Aug 2003 Aug 2002
D  SHARPER IMAGE CORP  9.00  15.00  38.20  34.50  11

Credit
Rating
Dept Store-Catalog Retail Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Aug 2003 Aug 2002 Aug 2003 Aug 2002
D  DSW SHOE WAREHOUSE  7.60  -3.60  56.48  44.94  26
A  NEIMAN MARCUS GROUP INC  7.60  -3.00  209.00  190.00  10
D  JC PENNEY COMPANY INC  6.50  2.90  1298.00  1236.00  5
E  VALUE CITY DEPARTMENT STORES INC  4.20  -5.10  205.10  188.70  9
E  VALUE CITY DEPARTMENT STORE  4.20  -6.50  205.10  120.63  70
C  SEARS ROEBUCK & COMPANY  3.90  -11.10  2100.00  2019.40  4
A  KOHLS CORP  3.20  4.00  773.50  668.20  16
C  NORDSTROM INC  3.20  0.20  402.60  362.00  11
E  BON TON STORES INC  2.40  -10.70  48.00  47.20  2
F  GOTTSCHALKS INC  1.00  -1.70  47.20  48.02  -2
D  SAKS INC/FKA PROFFITTS INC  0.80  -3.30  401.60  394.20  2
B  FEDERATED DEPARTMENT STORES INC/NEW  -0.80  -5.80  1078.00  1086.00  -1
C  MAY DEPARTMENT STORES COMPANY INC  -3.20  -8.60  953.80  983.10  -3
D  DILLARDS INC  -4.00  -3.00  575.40  598.00  -4
D  STAGE STORES INC  -7.30  4.50  71.50  74.50  -4
C  MARSHALL FIELDS  -7.30  -3.50  165.00  180.00  -8
A  MERVYNS  -8.90  -2.50  292.00  318.00  -8
E  ELDER BEERMAN STORES CORP,THE  -9.50  -5.40  41.40  46.00  -10

Credit
Rating
Drug Stores Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Aug 2003 Aug 2002 Aug 2003 Aug 2002
A  WALGREEN COMPANY INC  9.60  7.90  2008.48  2458.60  -18
B  CVS CORP  6.40  7.90  1960.00  1800.00  9
D  ECKERD DRUG CO/DIV OF JC PENNEY  -0.40  5.00  1127.00  1087.00  4
C  LONGS DRUG STORES CORP  -1.20  3.10  335.50  330.00  2

Credit
Rating
Fabrics & Notions Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Aug 2003 Aug 2002 Aug 2003 Aug 2002
D  JO ANN STORES INC  9.80  8.60  122.80  111.40  10
B  HANCOCK FABRICS INC  -0.80  8.90  30.60  30.80  -1

Credit
Rating
Footwear Retail Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Aug 2003 Aug 2002 Aug 2003 Aug 2002
C  SHOE CARNIVAL INC  5.10  -0.90  70.10  59.90  17
D  NATURALIZER RETAIL / SEE BROWN SHOE COMPANY  -0.40  5.00  8.10  8.80  -8
C  PAYLESS SHOESOURCE INC/SS  -4.10  0.20  232.70  240.10  -3

Credit
Rating
Home Furnishings Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Aug 2003 Aug 2002 Aug 2003 Aug 2002
C  BOMBAY CO INC  18.00  -6.00  37.70  30.60  23
A  HAVERTY FURNITURE COMPANIES  5.60    67.30    0
B  MICHAELS STORES INC  1.00  6.00  185.70  174.10  7
A  INTERTAN INC  -1.00  1.00  37.64  32.57  16
A  PIER 1 IMPORTS INC  -6.00  8.60  132.71  129.30  3

Credit
Rating
Mass Merchandisers-Retail Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Aug 2003 Aug 2002 Aug 2003 Aug 2002
B  BJS WHOLESALE CLUB  10.90  -0.90  496.66  423.90  17
A  TARGET STORES  8.30  0.50  3116.00  2689.00  16
B  SAMS CLUB  8.20  1.10  2651.00  2382.00  11
B  COSTCO WHOLESALE CORP  8.00  6.00  3410.00  3010.00  13
B  FREDS INC  7.30  10.40  94.30  77.90  21
B  WAL MART STORES INC  6.90  3.80  19533.00  18370.00  6
B  WAL MART STORES  6.60  4.30  13405.00  11782.00  14
B  FAMILY DOLLAR STORES INC  6.10  2.20  374.00  323.00  16
B  PAMIDA HOLDINGS CORP  5.90  -4.60  60.70  57.90  5
B  TARGET CORP/FKA DAYTON HUDSON  5.70  -0.10  3632.00  3231.00  12
D  DUCKWALL ALCO STORES INC  5.10  -8.00  31.10  28.20  10
D  BIG LOTS INC /FKA CONSOLIDATED STORES INC  4.80  12.70  281.00  255.50  10
B  DOLLAR GENERAL CORP  4.50  6.30  514.70  454.70  13
D  SHOPKO STORES INC  1.40  -3.90  256.20  253.30  1
D  SHOPKO STORES  0.10  -3.70  195.50  195.40  0

Credit
Rating
Sporting Goods Retail Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Aug 2003 Aug 2002 Aug 2003 Aug 2002
D  WEST MARINE INC  1.10  0.30  59.20  46.80  26



Performance Insight


Industry Credit
Rating
Company Comp %
APP    A CHICOS FAS INC 19.4 
HF    C BOMBAY CO INC 18.0 
APP    B PACIFIC SUNWEAR OF CALIFORNIA INC 15.6 
APP    A HOT TOPIC INC 11.8 
MM    B BJS WHOLESALE CLUB 10.9 
FN    D JO ANN STORES INC 9.8 
DR    A WALGREEN COMPANY INC 9.6 
CE    D SHARPER IMAGE CORP 9.0 
APP    A MENS WEARHOUSE INC,THE 8.8 
APP    D JOS A BANK CLOTHIERS INC /DE/ 8.6 


Top 10 Retail Performers

The low interest rate environment again boosted investment in the home as Bombay, Sharper Image and Jo Ann Stores made the list as Top retail performers spurred by increased advertising and new products. ... A return to more formal dressing and a complement of more casual offerings translated into solid growth at both Mens Wearhouse and Jos A Bank. ... The success of D.E.M.O. at Pacific Sunwear and good growth in all areas of Hot Topic's comps proved that where the boys are, girls will follow. ... The exclusive, private label designs at Chicos found favor with women. ... There is no "wall" to Walgreen's sustained comp increases in both pharmacy and front-end while lower pricing spurred growth in BJ's Wholesale.



Industry Credit
Rating
Company TY LY
APP    A BEBE STORES INC 7.9 -17.6
HF    C BOMBAY CO INC 18.0 -6.0
APP    A MENS WEARHOUSE INC,THE 8.8 -12.7
APP    B CHILDRENS PLACE RETAIL STORES 1.0 -16.0
APP    C ANNTAYLOR STORES CORP/HC 8.2 -7.6
DEP    C SEARS ROEBUCK & COMPANY 3.9 -11.1
DEP    E BON TON STORES INC 2.4 -10.7
MM    D DUCKWALL ALCO STORES INC 5.1 -8.0
MM    B BJS WHOLESALE CLUB 10.9 -0.9
DEP    D DSW SHOE WAREHOUSE 7.6 -3.6


Rising Stars - Most Improved

Abysmal results in August of 2002 contributed significantly to some companies making our list of "Rising Stars", while others like Bombay, continue to sustain their strong performance. ... The decision to lower prices benefited comp growth at both BJs and The Children's Place. ... A focus on home (home appliances and lawn and garden) improved Sears while refocused merchandising boosted Bon Ton and aggressive promotions bolstered BeBe and Ann Taylor, which were accessorized by shoes at DSW. ... A better than usual back to school made Duckwall quack with pleasure while Mens Wearhouse recovered from a double-digit decline in 2002.



Industry Credit
Rating
Company Comp %
APP    D GADZOOKS INC -33.6 
APP    F BOBS STORES INC -24.0 
APP    B DEB SHOPS INC -15.1 
APP    A ABERCROMBIE & FITCH CO -11.0 
APP    C WET SEAL INC -10.7 
APP    B AMERICAN EAGLE OUTFITTERS INC -10.4 
DEP    E ELDER BEERMAN STORES CORP,THE -9.5 
APP    B CATO CORP -9.0 
DEP    A MERVYNS -8.9 
APP    B TALBOTS INC -8.7 


Bottom 10 Retail Performers

After saying goodbye to men in July, Gadzooks has said hello to too few junior girls through the month of August with the loss of juniors also apparent at Deb Shops and Abercrombie and Fitch. … Wet Seal is optimistically looking forward to the contributions of its new management under the leadership of Allan Harms. … Bob's thinks that people are going back to school late this year and will recoup in September…American Eagle was singing a 'Bluenote' in August as merchandise mix left much to be desired across Company brands. … Kohl's continued to invade Mervyn's domain as Cato continued to struggle to attract attention. … Talbot's suffered from a lack of clearance merchandise while Elder Beerman continued to just suffer.



Industry Credit
Rating
Company TY LY
APP    D GADZOOKS INC -33.6 -6.4
APP    F BOBS STORES INC -24.0 1.7
HF    A PIER 1 IMPORTS INC -6.0 8.6
APP    B DEB SHOPS INC -15.1 -1.4
DEP    D STAGE STORES INC -7.3 4.5
APP    B MOTHERS WORK INC / MOTHERHOOD MATERNITY -1.7 9.1
APP    E UNITED RETAIL GROUP INC/DE -8.0 2.0
FN    B HANCOCK FABRICS INC -0.8 8.9
APP    A ABERCROMBIE & FITCH CO -11.0 -3.0
MM    D BIG LOTS INC /FKA CONSOLIDATED STORES INC 4.8 12.7


Falling Stars - Sharpest Decline

It would appear that the kids went back to school this year with a thinner wardrobe than prior years as apparel sales continued to slump in August as evidenced by the number of apparel retailers in our falling stars including Bob's Stores, Deb Shops, Mother's Work, Abercrombie, Stage Stores and United Retail. … Gadzook's exacerbated the problem by introducing its outerwear offerings too early. … Big Lots found it tough to significantly improve on its prior year comps, but still came in at a very respectable increase continuing to reap the benefits of its merchandising and store initiatives.



Industry Industry Highest Median Lowest
RETAIL SECTOR
19.4  1.0  -33.6 
APP Apparel Stores 19.4  -1.6  -33.6 
CE Consumer Electronics 9.0  9.0  9.0 
DEP Dept Store-Catalog Retail 7.6  0.2  -9.5 
DR Drug Stores 9.6  3.6  -1.2 
FN Fabrics & Notions 9.8  4.5  -0.8 
FW Footwear Retail 5.1  0.2  -4.1 
HF Home Furnishings 18.0  3.5  -6.0 
MM Mass Merchandisers-Retail 10.9  6.0  0.1 
SG Sporting Goods Retail 1.1  1.1  1.1 


Industry Performance

A fairly strong back to school season helped most industries report modest comp gains on average while the home oriented consumers spurred stronger gains in Consumer Electronics, Fabrics and Notions, and Home Furnishings. ... On the whole, Apparel Stores and Department Stores were weighed down by some substantially negative performers while the seemingly recession proof Drug Stores were impaired by some less than stellar performers. ... A focus on value drove even the worst Mass Merchant performer into positive territory.



COMPARABLE STORE SALES REPORT

Global Credit Services' Comparable Store Sales Report focuses on macro consumer economic pattern in combination with insightful commentary. We include our proprietary rating for each company as an additional criterion to aid subscribers' assessments.

The Comparable Store Sales Report is comprised of six sections:
Top 10 Retailers
Rising stars - Most Improved
Bottom 10 Retailers
Falling Stars - Sharpest Decline
Industry Comp Performance
Alphabetic list of retail sales performances and comps

Proprietary Rating Definitions:
A - Requirements
B - Low Risk
C - Moderate Risk
D - Moderately High Risk
E - High Risk
F - Distressed Company

Methodology:
Multiple operating units of a company are reported separately as well as on a consolidated basis. Each operating unit references its parent.

For Example:
Target Corp – the consolidated figures.
Target Stores – solely the mass merchant store figures.
Mervyns – department store figures.
Marshall Fields – department store figures.

Catalog operations with a retail component Spiegel/Eddie Bauer will have the comparable store sales numbers for the Eddie Bauer stores listed under both Eddie Bauer and Spiegel but will consolidate the sales under Spiegel. (Eddie Bauer does not provide separate sales figures.)

Neither JC Penney nor Brown Shoe provides consolidated figures. Therefore, information is entered separately for each unit for which they supply monthly sales.