Credit Insights

SEPTEMBER 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
Ind	Cred	Company	YTD	Sep 2003	Sep 2002	Sep 2003	Sep 2002	Sales % Change

Companies Ranked by Industry

Credit Rating	Apparel Stores	Monthly Comp Change - %		Net Sales (in millions)		Sales % Change
Credit Rating	Apparel Stores	Sep 2003	Sep 2002	Sep 2003	Sep 2002	Sales % Change
C	CHILDRENS PLACE RETAIL STORES	30.00	-30.00	88.40	60.10	47
A	CHICOS FAS INC	22.20	21.70	86.00	54.50	58
A	AEROPOSTALE INC	22.00	-2.50	76.60	51.30	49
B	PACIFIC SUNWEAR OF CALIFORNIA INC	18.50	4.40	81.90	63.50	29
F	FILENES BASEMENT CORP/SEE SCHOTTENSTEIN	13.90	-0.90	36.18	30.52	19
D	GAP INC,THE	13.00	-2.00	1500.00	1300.00	15
D	JOS A BANK CLOTHIERS INC /DE/	13.00	9.20	27.70	21.50	29
A	MENS WEARHOUSE INC,THE	12.70	2.00	130.30	115.50	13
A	HOT TOPIC INC	9.00	5.90	48.90	37.40	31
C	LIMITED BRANDS INC	8.00	6.00	714.40	724.60	-1
C	TJX COMPANIES INC	8.00	-1.00	1313.00	1131.00	16
A	GYMBOREE CORP	8.00	5.00	56.60	49.80	14
B	CACHE INC	8.00	14.00	21.00	18.30	15
D	GOODYS FAMILY CLOTHING INC	7.60	-9.40	98.90	91.40	8
A	BEBE STORES INC	7.10	-2.00	26.60	23.60	13
A	S & K FAMOUS BRANDS INC	7.00	5.00	15.20	14.20	7
11	SPIEGEL INC/CASE #03-11540	7.00	-14.00	145.30	183.60	-21
A	CLAIRES STORES INC	7.00	11.00	93.99	82.40	14
11	EDDIE BAUER INC/CASE#03-11547	7.00	-14.00	145.30	0	0
C	ANNTAYLOR STORES CORP/HC	6.90	2.30	160.48	136.90	17
B	BUCKLE INC,THE	6.50	-1.60	41.50	36.80	13
D	CHARMING SHOPPES INC	5.00	-6.00	206.30	198.10	4
C	ROSS STORES INC	5.00	7.00	363.00	314.00	16
C	FAMOUS FOOTWEAR	4.50	-0.30	95.50	91.40	4
E	WILSONS THE LEATHER EXPERTS INC	4.30	-12.10	34.30	42.20	-19
A	CHRISTOPHER & BANKS CORP/FKA BRAUNS FASHIONS	3.00	.01	30.20	24.90	21
B	DRESS BARN INC	1.00	-2.00	74.60	72.00	4
B	TALBOTS INC	.60	-6.10	182.50	176.60	3
A	ABERCROMBIE & FITCH CO	-1.00	-10.00	149.60	129.30	16
B	AMERICAN EAGLE OUTFITTERS INC	-2.80	-10.10	122.10	113.20	8
E	STEIN MART INC	-3.30	4.00	124.40	128.40	-3
B	MOTHERS WORK INC / MOTHERHOOD MATERNITY	-4.70	2.60	41.30	38.50	7
F	FACTORY 2 U STORES INC/ FKA FAMILY BARGAIN CORP	-5.60	-2.40	40.60	44.00	-8
E	UNITED RETAIL GROUP INC/DE	-8.00	-5.00	34.30	38.10	-10
B	CATO CORP	-8.00	-1.00	55.50	55.50	0
C	WET SEAL INC	-10.00	-7.30	47.90	50.30	-5
B	DEB SHOPS INC	-10.60	-5.30	22.30	24.10	-7
D	GADZOOKS INC	-32.50	-6.80	15.60	24.00	-35

Credit Rating	Consumer Electronics	Monthly Comp Change - %		Net Sales (in millions)		Sales % Change
Credit Rating	Consumer Electronics	Sep 2003	Sep 2002	Sep 2003	Sep 2002	Sales % Change
D	SHARPER IMAGE CORP	8.00	37.00	39.20	31.30	25

Credit Rating	Dept Store-Catalog Retail	Monthly Comp Change - %		Net Sales (in millions)		Sales % Change
Credit Rating	Dept Store-Catalog Retail	Sep 2003	Sep 2002	Sep 2003	Sep 2002	Sales % Change
D	DSW SHOE WAREHOUSE INC.	16.90	1.20	86.74	65.79	32
A	NEIMAN MARCUS GROUP INC	13.60	16.10	345.00	298.00	16
E	RETAIL VENTURES INC/ FKA VALUE CITY DEPARTMENT STORES IN	10.60	-7.50	261.40	225.40	16
C	NORDSTROM INC	7.70	1.70	563.70	505.90	11
E	VALUE CITY DEPARTMENT STORE	7.10	-11.80	138.24	129.11	7
A	KOHLS CORP	5.50	-3.20	797.40	675.50	18
D	SAKS INC/FKA PROFFITTS INC	4.00	3.30	591.70	561.50	5
C	SEARS ROEBUCK & COMPANY	3.20	-5.90	2453.30	2430.00	1
B	FEDERATED DEPARTMENT STORES INC/NEW	3.20	.01	1352.00	1315.00	3
D	DILLARDS INC	3.00	-5.00	707.72	686.97	3
E	BON TON STORES INC	2.70	-7.50	62.80	61.50	2
C	MARSHALL FIELDS	2.40	-10.10	235.00	232.00	1
D	JC PENNEY COMPANY INC	.70	-3.10	1232.00	1242.00	-1
C	MAY DEPARTMENT STORES COMPANY INC	.40	-6.20	1135.00	1140.00	-0
F	GOTTSCHALKS INC	-1.60	1.40	53.80	56.20	-4
D	STAGE STORES INC	-1.80	-1.80	69.20	68.80	1
A	MERVYNS	-10.00	-3.50	266.00	293.00	-9

Credit Rating	Drug Stores	Monthly Comp Change - %		Net Sales (in millions)		Sales % Change
Credit Rating	Drug Stores	Sep 2003	Sep 2002	Sep 2003	Sep 2002	Sales % Change
A	WALGREEN COMPANY INC	12.90	11.80	2795.90	2382.00	17
B	CVS CORP	6.60	8.30	2490.00	2290.00	9
E	RITE AID CORP	6.00	8.70	1243.00	1183.00	5
D	ECKERD DRUG CO/DIV OF JC PENNEY	-1.10	5.70	1389.00	1371.00	1
C	LONGS DRUG STORES CORP	-2.00	3.20	412.90	409.20	1

Credit Rating	Fabrics & Notions	Monthly Comp Change - %		Net Sales (in millions)		Sales % Change
Credit Rating	Fabrics & Notions	Sep 2003	Sep 2002	Sep 2003	Sep 2002	Sales % Change
D	JO ANN STORES INC	3.30	5.00	165.20	159.60	4
A	HANCOCK FABRICS INC	.50	6.10	43.70	43.30	1

Credit Rating	Food Retail	Monthly Comp Change - %		Net Sales (in millions)		Sales % Change
Credit Rating	Food Retail	Sep 2003	Sep 2002	Sep 2003	Sep 2002	Sales % Change
	7 11 FOOD STORE	2.20	2.70	952.00	878.30	8

Credit Rating	Footwear Retail	Monthly Comp Change - %		Net Sales (in millions)		Sales % Change
Credit Rating	Footwear Retail	Sep 2003	Sep 2002	Sep 2003	Sep 2002	Sales % Change
C	SHOE CARNIVAL INC	1.80	-5.20	44.40	39.80	12
C	PAYLESS SHOESOURCE INC/SS	-1.10	1.10	269.50	263.50	2
D	NATURALIZER RETAIL / SEE BROWN SHOE COMPANY	-2.80	9.30	13.80	14.20	-3

Credit Rating	Home Furnishings	Monthly Comp Change - %		Net Sales (in millions)		Sales % Change
Credit Rating	Home Furnishings	Sep 2003	Sep 2002	Sep 2003	Sep 2002	Sales % Change
B	BOMBAY CO INC	17.00	15.00	53.20	43.60	22
A	HAVERTY FURNITURE COMPANIES	11.60		65.20		0
A	PIER 1 IMPORTS INC	2.00	7.40	168.66	152.80	10
B	MICHAELS STORES INC	1.00	10.00	312.70	296.10	6
A	INTERTAN INC	.01	.01	37.41	32.30	16

Credit Rating	Mass Merchandisers-Retail	Monthly Comp Change - %		Net Sales (in millions)		Sales % Change
Credit Rating	Mass Merchandisers-Retail	Sep 2003	Sep 2002	Sep 2003	Sep 2002	Sales % Change
B	BJS WHOLESALE CLUB	12.40	.50	606.42	509.37	19
B	COSTCO WHOLESALE CORP	9.00	5.00	4070.00	3590.00	13
B	SAMS CLUB	8.20	1.60	3210.00	2870.00	12
D	TARGET STORES	7.20	.40	3362.00	2927.00	15
B	FREDS INC	6.90	10.20	119.10	101.10	18
B	WAL MART STORES INC	6.00	3.30	23390.00	21900.00	7
B	WAL MART STORES	5.60	3.60	15850.00	14064.00	13
B	TARGET CORP/FKA DAYTON HUDSON	5.40	-0.80	3937.00	3507.00	12
B	FAMILY DOLLAR STORES INC	5.30	4.10	463.60	402.60	15
D	BIG LOTS INC /FKA CONSOLIDATED STORES INC	5.20	6.30	347.60	245.30	42
B	PAMIDA HOLDINGS CORP	4.60	-9.00	69.90	67.30	4
B	DOLLAR GENERAL CORP	3.80	5.00	638.80	567.60	13
D	DUCKWALL ALCO STORES INC	3.70	-2.90	37.90	35.00	8
D	SHOPKO STORES INC	-1.70	-3.20	266.80	272.00	-2
D	SHOPKO STORES	-3.80	-1.20	196.90	204.70	-4

Credit Rating	Other Retail Stores	Monthly Comp Change - %		Net Sales (in millions)		Sales % Change
Credit Rating	Other Retail Stores	Sep 2003	Sep 2002	Sep 2003	Sep 2002	Sales % Change
A	ELDER BEERMAN STORES INC. NOW PART OF BON TON STORES INC	2.90	-0.80	59.70	58.30	2

Credit Rating	Sporting Goods Retail	Monthly Comp Change - %		Net Sales (in millions)		Sales % Change
Credit Rating	Sporting Goods Retail	Sep 2003	Sep 2002	Sep 2003	Sep 2002	Sales % Change
D	WEST MARINE INC	1.70	5.70	56.60	44.80	26

Performance Insight

Industry	Credit Rating	Company	Comp %
APP	C	CHILDRENS PLACE RETAIL STORES	30.0
APP	A	CHICOS FAS INC	22.2
APP	A	AEROPOSTALE INC	22.0
APP	B	PACIFIC SUNWEAR OF CALIFORNIA INC	18.5
HF	B	BOMBAY CO INC	17.0
DEP	D	DSW SHOE WAREHOUSE INC.	16.9
APP	F	FILENES BASEMENT CORP/SEE SCHOTTENSTEIN	13.9
DEP	A	NEIMAN MARCUS GROUP INC	13.6
APP	D	GAP INC,THE	13.0
APP	D	JOS A BANK CLOTHIERS INC /DE/	13.0

Top 10 Retail Performers

For the first time in months, all of our Top 10 performers racked up double digit gains. ... Children's Place, Aeropostale, Pac Sun, DSW and the Gap undoubtedly reflect the "back to school" migration. ... Chico's private labels continue to attract women across its almost national retail chain. ... Others rediscovered Filene's Basement's value offerings that lifted this troubled retailer into positive numbers. ... The silk stocking crowd found merchandise to their liking at Neiman Marcus while men continued to go to the "Bank", Jos A., to withdraw casual and not so casual clothing to reinvest in their wardrobes. ... Shoppers continued to furnish, refurbish and accessorize their homes to the glee of Bombay.

Industry	Credit Rating	Company	TY	LY
APP	C	CHILDRENS PLACE RETAIL STORES	30.0	-30.0
APP	A	AEROPOSTALE INC	22.0	-2.5
APP	11	EDDIE BAUER INC/CASE#03-11547	7.0	-14.0
APP	11	SPIEGEL INC/CASE #03-11540	7.0	-14.0
DEP	E	VALUE CITY DEPARTMENT STORE	7.1	-11.8
DEP	E	RETAIL VENTURES INC/ FKA VALUE CITY DEPARTMENT STORES IN	10.6	-7.5
APP	D	GOODYS FAMILY CLOTHING INC	7.6	-9.4
APP	E	WILSONS THE LEATHER EXPERTS INC	4.3	-12.1
DEP	D	DSW SHOE WAREHOUSE INC.	16.9	1.2
APP	D	GAP INC,THE	13.0	-2.0

Rising Stars - Most Improved

Steep swings characterized most rising stars, in fact only one (DSW) was in positive territory last year, the balance having gone from red to black. ... Children's Place headed up our list with a notable 180 degree turnaround in comp sales performance. ... Eddie Bauer/Speigel, of late a frequent bottom dweller, registered positive comps after major store rationalizations. ... Retail Venture's ventures (Value City and DSW) and the balance of their composite posted improved performance as consumers stretch their value shopping dollars. ... Bob Goodfriend of Goody's says positive comps validate their merchandising turnaround. ... Cooling weather patterns helped Wilsons.

Industry	Credit Rating	Company	Comp %
APP	D	GADZOOKS INC	-32.5
APP	B	DEB SHOPS INC	-10.6
APP	C	WET SEAL INC	-10.0
DEP	A	MERVYNS	-10.0
APP	E	UNITED RETAIL GROUP INC/DE	-8.0
APP	B	CATO CORP	-8.0
APP	F	FACTORY 2 U STORES INC/ FKA FAMILY BARGAIN CORP	-5.6
APP	B	MOTHERS WORK INC / MOTHERHOOD MATERNITY	-4.7
MM	D	SHOPKO STORES	-3.8
APP	E	STEIN MART INC	-3.3

Bottom 10 Retail Performers

Gadzooks! Gadzooks headlines this category with a decline three times as large as any other member. ... Disappointingly, the expected black out baby boom has not yet hit the Mothers Work. ... In spite of the trend to value shopping, Factory 2 U suffers in the depressed California marketplace. ... United Retail's effort in the Plus Size market continues to produce negative results. ... Wet Seal and Deb Shops were out of the teen scene to the tune of double digit declining comps. ... "C"ato needs the Green Hornet's help to fight declining comps. ... Stein Mart hopes to solve sagging comps through a store closing program and the elimination of previous couponing practices while Shopko still suffers from competition.

Industry	Credit Rating	Company	TY	LY
CE	D	SHARPER IMAGE CORP	8.0	37.0
APP	D	GADZOOKS INC	-32.5	-6.8
FW	D	NATURALIZER RETAIL / SEE BROWN SHOE COMPANY	-2.8	9.3
HF	B	MICHAELS STORES INC	1.0	10.0
APP	E	STEIN MART INC	-3.3	4.0
APP	B	MOTHERS WORK INC / MOTHERHOOD MATERNITY	-4.7	2.6
APP	B	CATO CORP	-8.0	-1.0
DR	D	ECKERD DRUG CO/DIV OF JC PENNEY	-1.1	5.7
DEP	A	MERVYNS	-10.0	-3.5
APP	B	CACHE INC	8.0	14.0

Falling Stars - Sharpest Decline

A tough comparison told the tale for Sharper Image when a strong 8% gain against a 37% increase last year still placed them "sharply" on our list of Falling Stars. ... Difficult comparisons also plagued Cache, Michaels and Naturalizer. ... Gadzooks' thinner racks weighed oppressively on comp sales, average ticket prices and transaction counts. ... Mervyn would need a magician to post positive comps given the dilemna of the Department Store category. ... As Eckerd's front-end sagged so too did its results.

Industry	Industry	Highest	Median	Lowest
RETAIL SECTOR		30.0	4.4	-32.5

APP	Apparel Stores	30.0	4.7	-32.5
CE	Consumer Electronics	8.0	8.0	8.0
DEP	Dept Store-Catalog Retail	16.9	4.0	-10.0
DR	Drug Stores	12.9	4.5	-2.0
FN	Fabrics & Notions	3.3	1.9	0.5
FR	Food Retail	2.2	2.2	2.2
FW	Footwear Retail	1.8	-0.7	-2.8
HF	Home Furnishings	17.0	6.3	0.0
MM	Mass Merchandisers-Retail	12.4	5.2	-3.8
RET	Other Retail Stores	2.9	2.9	2.9
SG	Sporting Goods Retail	1.7	1.7	1.7

Industry Performance

As Autumn approached, America rediscovered fashion and slipped into new footwear to beat a path to Apparel Stores. ... At home still attracts shopping dollars in consumer electronics, home furnishings, fabrics and notions. ... Darwinism at its best - Drug Stores reflect the theory of survival of the fittest. ... The mass of Mass Merchants field the lion's share of consumer dollars and while Department Stores struggled some volume upticks were noted. ... Sporting Goods retailers are likely to see a flourish of traffic as fans don their Red Sox to go fishing for Marlins while Cubs compete for seats at the House that Ruth built. ... We think that covers all the bases!

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.