Credit Insights
OCTOBER 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
Oct 2003 Oct 2002 Oct 2003 Oct 2002
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     



Companies Ranked by Industry

Credit
Rating
Apparel Stores Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Oct 2003 Oct 2002 Oct 2003 Oct 2002
A  CHICOS FAS INC  20.60  18.10  68.20  43.30  58
A  HOT TOPIC INC  11.20  8.10  51.10  38.40  33
A  CLAIRES STORES INC  10.00  9.00  81.98  69.62  18
E  FASHION BUG  10.00  -2.00  0  0  0
C  CHILDRENS PLACE RETAIL STORES  8.00  -16.00  68.20  56.20  21
A  MENS WEARHOUSE INC,THE  7.20  3.70  107.30  98.50  9
B  CACHE INC  7.00  8.00  16.20  14.40  12
A  BEBE STORES INC  4.90  -4.70  28.20  25.60  10
D  JOS A BANK CLOTHIERS INC /DE/  4.60  2.40  27.00  22.10  22
B  PACIFIC SUNWEAR OF CALIFORNIA INC  4.60  18.60  62.60  54.60  15
F  FILENES BASEMENT CORP/SEE SCHOTTENSTEIN  4.40  2.20  28.55  26.14  9
A  S & K FAMOUS BRANDS INC  4.00  3.00  12.60  12.00  5
C  VICTORIAS SECRET STORES INC/LIMITED BRANDS  4.00  6.00  0  0  0
C  ANNTAYLOR STORES CORP/HC  3.90  .20  131.73  114.70  15
D  GOODYS FAMILY CLOTHING INC  2.50  6.90  94.70  90.40  5
B  BUCKLE INC,THE  2.30  5.90  31.70  30.90  3
B  DRESS BARN INC  1.00  -3.00  67.40  65.30  3
D  GAP INC,THE  1.00  11.00  1240.00  1200.00  3
D  CHARMING SHOPPES INC  .01  -3.00  157.60  159.00  -1
C  TJX COMPANIES INC  -1.00  7.00  1103.00  1030.00  7
C  LIMITED BRANDS INC  -2.00  3.00  556.60  615.20  -10
C  ROSS STORES INC  -2.00  7.00  299.00  278.00  8
A  CHRISTOPHER & BANKS CORP/FKA BRAUNS FASHIONS  -2.00  .01  39.10  33.40  17
C  FAMOUS FOOTWEAR  -2.80  .50  70.20  72.20  -3
E  UNITED RETAIL GROUP INC/DE  -5.00  -2.00  29.40  31.70  -7
B  MOTHERS WORK INC / MOTHERHOOD MATERNITY  -5.50  7.40  40.40  38.40  5
11  EDDIE BAUER INC/CASE#03-11547  -6.00  -7.00  0  0  0
11  SPIEGEL INC/CASE #03-11540  -6.00  -7.00  129.50  171.90  -25
B  DEB SHOPS INC  -6.10  2.40  22.00  22.80  -4
A  AEROPOSTALE INC  -6.80  11.70  56.10  48.70  15
C  LIMITED STORES INC ,THE/LIMITED BRANDS  -7.00  6.00  0  0  0
E  LANE BRYANT INC  -7.00  -6.00  0  0  0
E  STEIN MART INC  -7.60  1.50  98.60  106.30  -7
B  TALBOTS INC  -8.40  1.70  137.90  135.20  2
C  WET SEAL INC  -9.70  -9.10  37.90  40.20  -6
C  EXPRESS INC/LIMITED BRANDS  -10.00  4.00  0  0  0
F  FACTORY 2 U STORES INC/ FKA FAMILY BARGAIN CORP  -10.80  -2.30  35.40  41.30  -14
E  CATHERINES INC/CHARMING SHOPPES  -11.00  1.00  0  0  0
A  GYMBOREE CORP  -12.00  14.00  48.70  52.40  -7
B  CATO CORP  -13.00  4.00  48.80  52.20  -7
A  ABERCROMBIE & FITCH CO  -14.00  -3.00  105.00  104.80  0
B  AMERICAN EAGLE OUTFITTERS INC  -18.70  -2.00  96.10  104.80  -8
E  WILSONS THE LEATHER EXPERTS INC  -19.20  -5.70  41.20  58.70  -30
D  GADZOOKS INC  -26.60  -0.60  13.60  19.20  -29

Credit
Rating
Consumer Electronics Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Oct 2003 Oct 2002 Oct 2003 Oct 2002
D  SHARPER IMAGE CORP  12.00  23.00  35.00  37.30  -6

Credit
Rating
Dept Store-Catalog Retail Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Oct 2003 Oct 2002 Oct 2003 Oct 2002
D  DSW SHOE WAREHOUSE INC.  9.10  7.50  72.34  59.46  22
A  NEIMAN MARCUS GROUP INC  6.40  1.70  272.00  246.00  11
D  SAKS INC/FKA PROFFITTS INC  4.10  -0.70  464.10  441.80  5
C  NORDSTROM INC  3.50  9.60  454.40  425.80  7
E  RETAIL VENTURES INC/ FKA VALUE CITY DEPARTMENT STORES IN  .90  .50  214.20  202.85  6
B  FEDERATED DEPARTMENT STORES INC/NEW  -2.00  .30  1058.00  1083.00  -2
D  JC PENNEY COMPANY INC  -2.30  13.70  1146.00  1192.00  -4
C  SEARS ROEBUCK & COMPANY  -2.70  -10.00  1896.20  2000.00  -5
E  VALUE CITY DEPARTMENT STORE  -3.40  -2.20  113.32  117.26  -3
C  MAY DEPARTMENT STORES COMPANY INC  -3.50  -7.10  887.20  925.50  -4
D  DILLARDS INC  -5.00  -2.00  481.33  509.30  -5
F  GOTTSCHALKS INC  -5.80  4.20  44.90  48.90  -8
E  BON TON STORES INC  -7.00  4.60  69.70  58.90  18
D  STAGE STORES INC  -10.40  6.90  57.20  61.10  -6
C  MARSHALL FIELDS  -10.50  5.00  204.00  231.00  -12
A  KOHLS CORP  -11.60  18.30  823.10  799.70  3
A  MERVYNS  -15.10  -5.70  229.00  266.00  -14

Credit
Rating
Drug Stores Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Oct 2003 Oct 2002 Oct 2003 Oct 2002
A  WALGREEN COMPANY INC  12.00  8.20  2994.00  2569.20  17
E  RITE AID CORP  6.90  6.30  1260.00  1186.00  6
B  CVS CORP  6.30  7.10  2020.00  1860.00  9
D  ECKERD DRUG CO/DIV OF JC PENNEY  -1.70  3.90  1126.00  1103.00  2

Credit
Rating
Fabrics & Notions Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Oct 2003 Oct 2002 Oct 2003 Oct 2002
D  JO ANN STORES INC  1.10  6.60  159.50  159.10  0
A  HANCOCK FABRICS INC  -1.40  4.50  38.30  38.90  -2

Credit
Rating
Footwear Retail Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Oct 2003 Oct 2002 Oct 2003 Oct 2002
D  NATURALIZER RETAIL / SEE BROWN SHOE COMPANY  1.80  17.50  11.10  11.70  -5
C  PAYLESS SHOESOURCE INC/SS  1.40  .90  207.50  202.50  2
C  SHOE CARNIVAL INC  -9.00  13.70  37.70  37.90  -1

Credit
Rating
Home Furnishings Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Oct 2003 Oct 2002 Oct 2003 Oct 2002
A  HAVERTY FURNITURE COMPANIES  8.30  0  64.80  59.00  10
B  BOMBAY CO INC  5.00  17.00  44.40  39.60  12
B  MICHAELS STORES INC  4.00  2.00  256.50  234.50  9
A  PIER 1 IMPORTS INC  1.60  6.30  142.88  130.70  9
A  INTERTAN INC  -3.00  -5.00  36.13  30.24  19

Credit
Rating
Mass Merchandisers-Retail Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Oct 2003 Oct 2002 Oct 2003 Oct 2002
B  BJS WHOLESALE CLUB  10.20  -0.10  506.10  436.73  16
B  COSTCO WHOLESALE CORP  8.00  2.00  3420.00  3010.00  14
B  SAMS CLUB  7.00  -1.60  2637.00  2404.00  10
D  TARGET STORES  4.50  2.10  2885.00  2605.00  11
B  WAL MART STORES INC  4.50  3.70  19066.00  18497.00  3
B  FREDS INC  4.00  10.40  98.30  85.10  16
B  WAL MART STORES  4.00  4.80  12720.00  11770.00  8
B  DOLLAR GENERAL CORP  3.10  4.50  531.90  475.40  12
D  BIG LOTS INC /FKA CONSOLIDATED STORES INC  2.80  3.80  301.10  349.70  -14
B  TARGET CORP/FKA DAYTON HUDSON  1.60  1.50  3374.00  3145.00  7
B  FAMILY DOLLAR STORES INC  1.60  6.10  378.40  340.00  11
D  DUCKWALL ALCO STORES INC  .10  .50  31.40  30.20  4
B  PAMIDA HOLDINGS CORP  -0.80  -0.20  59.40  60.30  -1
D  SHOPKO STORES INC  -3.50  -2.30  235.50  244.40  -4
D  SHOPKO STORES  -4.30  -2.90  176.10  184.10  -4

Credit
Rating
Other Retail Stores Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Oct 2003 Oct 2002 Oct 2003 Oct 2002
C  BATH & BODY WORKS/LIMITED BRANDS  3.00  -4.00  0  0  0
A  ELDER BEERMAN STORES INC. NOW PART OF BON TON STORES INC  2.90  -0.70  59.70  46.70  28

Credit
Rating
Sporting Goods Retail Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Oct 2003 Oct 2002 Oct 2003 Oct 2002
D  WEST MARINE INC  2.30  2.20  36.70  28.90  27



Performance Insight


Industry Credit
Rating
Company Comp %
APP    A CHICOS FAS INC 20.6 
DR    A WALGREEN COMPANY INC 12.0 
CE    D SHARPER IMAGE CORP 12.0 
APP    A HOT TOPIC INC 11.2 
MM    B BJS WHOLESALE CLUB 10.2 
APP    A CLAIRES STORES INC 10.0 
APP    E FASHION BUG 10.0 
DEP    D DSW SHOE WAREHOUSE INC. 9.1 
HF    A HAVERTY FURNITURE COMPANIES 8.3 
APP    C CHILDRENS PLACE RETAIL STORES 8.0 


Top 10 Retail Performers

As Groucho said on many an occasion, "Chicos got the goods" and women agreed placing them at the top of our Top Ten...Like the geyser Old Faithful, Walgreen remains ensconced in the rarified air that only our best performers enjoy...Niche apparel featuring music themes were a "Hot Topic" while Claires accessorized newly attired fashion forward women embarking on their fall look...The twenty something crowd got the "Fashion Bug" as this unit of Charming Shoppes was all a buzz...Let's not forget the Moms as they and their charges returned to the Childrens Place and full shopping bags dragged this specialty retailer into this special category...The oft repeated phrase, "baby needs a new pair of shoes" brought the family to DSW for "in" comparable bargins that soothed the sole...BJs made members smile as they continue to bulk up in the battle of the clubs...Proving that the home remains the consumer's bastion Haverty Furniture and Sharper Image rang up record sales.



Industry Credit
Rating
Company TY LY
APP    C CHILDRENS PLACE RETAIL STORES 8.0 -16.0
APP    E FASHION BUG 10.0 -2.0
MM    B BJS WHOLESALE CLUB 10.2 -0.1
APP    A BEBE STORES INC 4.9 -4.7
MM    B SAMS CLUB 7.0 -1.6
HF    A HAVERTY FURNITURE COMPANIES 8.3 0.0
DEP    C SEARS ROEBUCK & COMPANY -2.7 -10.0
RET    C BATH & BODY WORKS/LIMITED BRANDS 3.0 -4.0
MM    B COSTCO WHOLESALE CORP 8.0 2.0
DEP    D SAKS INC/FKA PROFFITTS INC 4.1 -0.7


Rising Stars - Most Improved

In addition to basking in the sunshine that is the exclusive territory of Top Ten Performers, Childrens Place, Fashion Bug, BJS, and Haverty also carried home Rising Star trophies...Sears was the only member of our Most Improved firms that remained in negative territory but its disappointing apparel sales benefited from hardlines...The clubs were well represented with the Big Three (Costco, BJs and Sams) all ranking as Rising Stars, up from marginal comp performances last year...Moderate priced indulgence had women seeking the "works" at Bath & Body Works...Contemporary private label offerings found favor with women, bolstering Bebe...Women led the way for Saks with Men's and Children's categories more poorly performing.



Industry Credit
Rating
Company Comp %
APP    D GADZOOKS INC -26.6 
APP    E WILSONS THE LEATHER EXPERTS INC -19.2 
APP    B AMERICAN EAGLE OUTFITTERS INC -18.7 
DEP    A MERVYNS -15.1 
APP    A ABERCROMBIE & FITCH CO -14.0 
APP    B CATO CORP -13.0 
APP    A GYMBOREE CORP -12.0 
DEP    A KOHLS CORP -11.6 
APP    E CATHERINES INC/CHARMING SHOPPES -11.0 
APP    F FACTORY 2 U STORES INC/ FKA FAMILY BARGAIN CORP -10.8 


Bottom 10 Retail Performers

When you're in, you're in and when you're out, you're out. Nowhere is this more true than retailers catering to the teen and young adult markets...Former high fliers Abercrombie, Kohls and American Eagle all made our list as Bottom Ten performers with Kohls feeling the sting of less seasonal buying...Even value prices did not find favor with consumers as weather and wildfires wreaked havoc at Cato and Factory 2-U...Tough comparisons and tougher competition took the weeee! out of Gymboree...Both Mervyn's and Marshall Fields fell far short of their "Target"...Warmer weather whacked Wilsons Leather...Month over month improvement but still quite negative, Gadzooks has not yet schooled consumers to its all-girl format.



Industry Credit
Rating
Company TY LY
DEP    A KOHLS CORP -11.6 18.3
APP    A GYMBOREE CORP -12.0 14.0
APP    D GADZOOKS INC -26.6 -0.6
FW    C SHOE CARNIVAL INC -9.0 13.7
APP    A AEROPOSTALE INC -6.8 11.7
DEP    D STAGE STORES INC -10.4 6.9
APP    B CATO CORP -13.0 4.0
APP    B AMERICAN EAGLE OUTFITTERS INC -18.7 -2.0
DEP    D JC PENNEY COMPANY INC -2.3 13.7
FW    D NATURALIZER RETAIL / SEE BROWN SHOE COMPANY 1.8 17.5


Falling Stars - Sharpest Decline

How the mighty have fallen!! Strong double digit comparable store sales increases last October make the significant declines for October 2003 much less palatable for Kohls, Gymboree, Aeropostale, Shoe Carnivale, and JC Penney...Fewer promotions and unseasonably warm weather plagued Shoe Carnivale, Aeropostale and Stage while sales of home goods and accessories failed to provide enough pennies to offset soft-line performance at Penneys...Gadzooks' format change caused comps to fall far...Naturalizer stands all alone as the sole falling retailer to report a positive comp.



Industry Industry Highest Median Lowest
RETAIL SECTOR
20.6  -0.7  -26.6 
APP Apparel Stores 20.6  -2.5  -26.6 
CE Consumer Electronics 12.0  12.0  12.0 
DEP Dept Store-Catalog Retail 9.1  -3.3  -15.1 
DR Drug Stores 12.0  5.9  -1.7 
FN Fabrics & Notions 1.1  -0.2  -1.4 
FW Footwear Retail 1.8  -1.9  -9.0 
HF Home Furnishings 8.3  3.2  -3.0 
MM Mass Merchandisers-Retail 10.2  2.9  -4.3 
RET Other Retail Stores 3.0  3.0  2.9 
SG Sporting Goods Retail 2.3  2.3  2.3 


Industry Performance

October was a trick rather than a treat for most of the retail sector with the median comp a modest decline...Even some outstanding performers in Apparel and Department Stores failed to offset pressure from weather and consumer belt tightening...Value priced core items and the need to "nest" spurred shoppers to shop Mass Merchants, Electronics purveyors, Home Furnishers and Other Retail Stores while the need for health care necessities pushed Drugs...Supplies to put boats in drydock kept Sporting Goods shipshape while Footwear faltered from fickle feet.



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.