Credit Insights
DECEMBER 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
Dec 2003 Dec 2002 Dec 2003 Dec 2002
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     



Companies Ranked by Industry

Credit
Rating
Apparel Stores Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Dec 2003 Dec 2002 Dec 2003 Dec 2002
C  ANNTAYLOR STORES CORP/HC  26.20  -14.60  215.92  154.07  40
A  CHICOS FAS INC  24.30  12.60  91.00  56.50  61
D  JOS A BANK CLOTHIERS INC /DE/  14.00  5.40  50.30  37.80  33
B  PACIFIC SUNWEAR OF CALIFORNIA INC  12.00  16.10  187.50  152.90  23
A  HOT TOPIC INC  10.10  10.60  115.70  87.40  32
C  EXPRESS INC/LIMITED BRANDS  10.00    .00    0
F  FILENES BASEMENT CORP/SEE SCHOTTENSTEIN  9.00  -3.60  43.35  38.10  14
C  CHILDRENS PLACE RETAIL STORES  7.00  -19.00  114.00  98.10  16
A  BEBE STORES INC  7.00  -5.00  50.60  45.90  10
D  GORDMANS INC  6.40    .00    0
E  LANE BRYANT INC  6.00  -13.00  .00  .00  0
A  CLAIRES STORES INC  6.00  10.00  205.64  183.07  12
C  LIMITED BRANDS INC  6.00  .01  1768.00  1650.00  7
A  AEROPOSTALE INC  5.70  .30  150.90  117.10  29
B  BUCKLE INC,THE  4.80  -1.90  73.00  66.70  9
D  CHARMING SHOPPES INC  4.00  -7.00  287.00  281.50  2
C  ROSS STORES INC  4.00  6.00  513.00  452.00  13
A  S&K FAMOUS BRANDS INC  4.00  .01  24.10  22.80  6
C  TJX COMPANIES INC  4.00  1.00  1806.00  1600.00  13
E  STEIN MART INC  3.50  -.70  203.20  196.90  3
B  CACHE INC  3.00  11.00  31.30  28.40  10
A  GYMBOREE CORP  3.00  -6.00  72.10  64.50  12
E  FASHION BUG  3.00  -3.00  .00  .00  0
A  MENS WEARHOUSE INC,THE  2.90  -2.70  196.70  184.40  7
A  ELDER BEERMAN STORES INC. NOW PART OF BON TON STORES INC  2.10  1.60  120.30  117.30  3
E  UNITED RETAIL GROUP INC/DE  2.00  -9.00  47.80  48.10  -1
B  DRESS BARN INC  1.00  -6.00  81.20  79.70  2
D  GAP INC,THE  1.00  5.00  2520.00  2500.00  1
D  GOODYS FAMILY CLOTHING INC  .50  -1.50  186.70  184.20  1
B  CATO CORP  .01  -7.00  94.90  90.20  5
E  CATHERINES INC/CHARMING SHOPPES  .01  .01  .00  .00  0
 FAMOUS FOOTWEAR  -.20  -.90  111.90  109.50  2
11  EDDIE BAUER INC/CASE#03-11547  -3.00  -6.00  .00  .00  0
11  SPIEGEL INC/CASE #03-11540  -3.00  -6.00  249.20  371.80  -33
B  TALBOTS INC  -3.80  -9.10  200.10  201.90  -1
 VICTORIAS SECRET STORES INC/LIMITED BRANDS  -5.00    .00    0
B  MOTHERS WORK INC / MOTHERHOOD MATERNITY  -5.40  3.40  48.20  47.40  2
B  AMERICAN EAGLE OUTFITTERS INC  -5.70  -3.70  280.60  269.00  4
F  FACTORY 2 U STORES INC/ FKA FAMILY BARGAIN CORP  -5.80  -3.90  74.60  83.30  -10
F  WILSONS THE LEATHER EXPERTS INC  -6.80  -10.10  164.70  182.80  -10
B  DEB SHOPS INC  -7.00  -11.40  38.70  40.50  -4
A  CHRISTOPHER & BANKS CORP/FKA BRAUNS FASHIONS  -7.00  -2.00  51.40  47.80  8
C  WET SEAL INC  -7.30  -19.40  78.90  84.10  -6
A  ABERCROMBIE & FITCH CO  -13.00  .01  302.10  296.00  2
F  GADZOOKS INC  -25.20  -2.40  40.50  56.00  -28

Credit
Rating
Consumer Electronics Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Dec 2003 Dec 2002 Dec 2003 Dec 2002
D  SHARPER IMAGE CORP  21.00  8.00  158.90  122.40  30
D  BEST BUY CO INC  9.30  .40  4640.00  4240.00  9
E  TRANS WORLD ENTERTAINMENT CORP  4.00  -2.00  325.00  .00  0
D  ULTIMATE ELECTRONICS INC  .00  -12.00  .00  .00  0
D  CIRCUIT CITY STORES INC  -2.00  -6.00  1710.00  1740.00  -2

Credit
Rating
Dept Store-Catalog Retail Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Dec 2003 Dec 2002 Dec 2003 Dec 2002
A  NEIMAN MARCUS GROUP INC  14.80  -2.80  544.00  473.00  15
C  NORDSTROM INC  9.10    941.80    0
D  SAKS INC/FKA PROFFITTS INC  5.10  -2.10  985.90  927.70  6
D  JC PENNEY COMPANY INC  4.30  4.70  2839.00  2773.00  2
E  RETAIL VENTURES INC/ FKA VALUE CITY DEPARTMENT STORES IN  3.00  -1.80  343.60  322.40  7
B  FEDERATED DEPARTMENT STORES INC/NEW  1.20  -2.60  2782.00  2770.00  0
D  STAGE STORES INC  1.20  -5.80  211.50  144.30  47
C  MAY DEPARTMENT STORES COMPANY INC  1.10  -4.70  2520.00  2570.00  -2
F  GOTTSCHALKS INC  .60  -1.60  125.80  128.70  -2
 MARSHALL FIELDS  -.30  -5.20  407.00  413.00  -1
E  VALUE CITY DEPARTMENT STORE  -.30  -1.80  224.84  225.50  -0
C  SEARS ROEBUCK & COMPANY  -.80  -4.60  3924.80  4070.00  -4
B  KOHLS CORP  -1.20  3.30  1837.30  1630.00  13
E  BON TON STORES INC  -1.90  1.30  253.20  135.30  87
D  DILLARDS INC  -4.00  -4.00  1246.00  1310.00  -5
 MERVYNS  -7.30  -8.20  549.00  584.00  -6

Credit
Rating
Drug Stores Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Dec 2003 Dec 2002 Dec 2003 Dec 2002
A  WALGREEN COMPANY INC  13.30  8.00  3741.70  3172.90  18
E  RITE AID CORP  8.00  5.70  1474.00  1372.00  7
D  ECKERD DRUG CO/DIV OF JC PENNEY  -2.50  .30  1527.00  1528.00  -0

Credit
Rating
Eating & Drinking Places Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Dec 2003 Dec 2002 Dec 2003 Dec 2002
B  PANERA BREAD CO  .70    .00    0

Credit
Rating
Fabrics & Notions Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Dec 2003 Dec 2002 Dec 2003 Dec 2002
D  JO ANN STORES INC  5.40  13.70  246.30  231.30  6
A  HANCOCK FABRICS INC  3.30  13.60  50.70  48.80  4

Credit
Rating
Footwear Retail Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Dec 2003 Dec 2002 Dec 2003 Dec 2002
D  DSW SHOE WAREHOUSE INC.  13.90  -.40  75.37  58.90  28
D  NATURALIZER RETAIL / SEE BROWN SHOE COMPANY  2.10  6.20  12.10  12.60  -4
C  PAYLESS SHOESOURCE INC/SS  1.80  -.70  301.80  292.00  3
C  SHOE CARNIVAL INC  -3.80  -3.40  60.50  57.00  6

Credit
Rating
Home Furnishings Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Dec 2003 Dec 2002 Dec 2003 Dec 2002
A  HAVERTY FURNITURE COMPANIES  9.90    72.20    0
B  MICHAELS STORES INC  5.00  6.00  470.20  427.20  10
B  INTERTAN INC  5.00  -5.00  87.21  68.59  27
B  BOMBAY COMPANY INC  3.00  18.00  111.10  98.80  12
F  RESTORATION HARDWARE INC  -3.50    128.80    0
A  PIER 1 IMPORTS INC  -4.90  3.80  300.15  287.30  4
F  FRANKS NURSERY & CRAFTS INC  -10.40  .00  35.60  39.70  -10

Credit
Rating
Mass Merchandisers-Retail Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Dec 2003 Dec 2002 Dec 2003 Dec 2002
B  COSTCO WHOLESALE CORP  11.00  3.00  5200.00  4580.00  14
B  FREDS INC  7.00  7.50  170.60  142.60  20
B  BJS WHOLESALE CLUB  6.60  .80  852.70  765.47  11
D  BIG LOTS INC /FKA CONSOLIDATED STORES INC  6.20  10.10  633.70  524.20  21
 SAMS CLUB  6.10  -2.80  4078.00  3747.00  9
 TARGET STORES  5.60  1.00  6680.00  5958.00  12
B  WAL MART STORES INC  4.30  2.30  33657.00  31584.00  7
B  DOLLAR GENERAL CORP  4.30  2.30  911.00  807.40  13
B  TARGET CORP/FKA DAYTON HUDSON  4.10  -.30  7737.00  7035.00  10
 WAL MART STORES  3.90  3.30  23106.00  20127.00  15
B  PAMIDA HOLDINGS CORP  2.10  -1.60  106.50  104.90  2
B  FAMILY DOLLAR STORES INC  .70  2.10  658.70  599.30  10
D  DUCKWALL ALCO STORES INC  .60  3.00  60.60  57.90  5
D  SHOPKO STORES INC  -2.10  -.20  466.50  477.00  -2
D  SHOPKO STORES  -3.20  .20  360.00  372.10  -3

Credit
Rating
Sporting Goods Retail Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Dec 2003 Dec 2002 Dec 2003 Dec 2002
D  WEST MARINE INC  2.30  -9.60  53.10  36.80  44

Credit
Rating
Specialty Retail Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Dec 2003 Dec 2002 Dec 2003 Dec 2002
C  BATH & BODY WORKS/LIMITED BRANDS  16.00    .00    0



Performance Insight


Industry Credit
Rating
Company Comp %
APP    C ANNTAYLOR STORES CORP/HC 26.2 
APP    A CHICOS FAS INC 24.3 
CE    D SHARPER IMAGE CORP 21.0 
SR    C BATH & BODY WORKS/LIMITED BRANDS 16.0 
DEP    A NEIMAN MARCUS GROUP INC 14.8 
APP    D JOS A BANK CLOTHIERS INC /DE/ 14.0 
FW    D DSW SHOE WAREHOUSE INC. 13.9 
DR    A WALGREEN COMPANY INC 13.3 
APP    B PACIFIC SUNWEAR OF CALIFORNIA INC 12.0 
MM    B COSTCO WHOLESALE CORP 11.0 


Top 10 Retail Performers

Women favored the tailored look at AnnTaylor as did men shopping at Jos A Banks...Chicos followers saw their world as Black & White as their banner put them in the black... Lastly, the girls continued to squeeze into PacSun stores and their boyfriends did the same at Demo... New "duds" call for new shoes and DSW was the benefactor... Uptown the Neiman Marcus crowd found everything on their gift list at both their stores and their famous catalog... Not yet tired out shoppers swung by "club Costco" and fulfilled their quest for value... Oh the sweet smell of success as Bath & Body Works helped get the whole family lathered up and shiny clean... The Top 10 wouldn't be complete without the king of drugs making their now routine appearance, Walgreens makes being the best look easy.



Industry Credit
Rating
Company TY LY
APP    C ANNTAYLOR STORES CORP/HC 26.2 -14.6
APP    C CHILDRENS PLACE RETAIL STORES 7.0 -19.0
APP    E LANE BRYANT INC 6.0 -13.0
DEP    A NEIMAN MARCUS GROUP INC 14.8 -2.8
FW    D DSW SHOE WAREHOUSE INC. 13.9 -0.4
CE    D SHARPER IMAGE CORP 21.0 8.0
APP    F FILENES BASEMENT CORP/SEE SCHOTTENSTEIN 9.0 -3.6
APP    C WET SEAL INC -7.3 -19.4
CE    D ULTIMATE ELECTRONICS INC 0.0 -12.0
APP    A BEBE STORES INC 7.0 -5.0


Rising Stars - Most Improved

Being a member in good standing of our coveted Top 10 is surely to be recognized, but continuing to be featured as a "rising star" is remarkable... We tip our hat to AnnTayor, DSW Shoe, Neiman Marcus and certainly Sharper Image whose "gotta have gadgets" appealed to more shoppers than management forecasted...Lane Bryant proudly weighed in with round positive results... The racks at Filenes Basement were stripped bare by value minded consumers... Santa filled his sack with goodies from the Childrens Place as they deemed nice versus last year when Santa treated them as naughty... Both Bebe Stores and Wet Seal did better with the teen set, young women, but Wet Seal stayed wet as negative comps lingered... The season of flat screen TV's and other consumer electronics became the ultimate choice for many families and enabled Ultimate Electronics to broadcast "flat" comps.



Industry Credit
Rating
Company Comp %
APP    F GADZOOKS INC -25.2 
APP    A ABERCROMBIE & FITCH CO -13.0 
HF    F FRANKS NURSERY & CRAFTS INC -10.4 
APP    C WET SEAL INC -7.3 
DEP     MERVYNS -7.3 
APP    A CHRISTOPHER & BANKS CORP/FKA BRAUNS FASHIONS -7.0 
APP    B DEB SHOPS INC -7.0 
APP    F WILSONS THE LEATHER EXPERTS INC -6.8 
APP    F FACTORY 2 U STORES INC/ FKA FAMILY BARGAIN CORP -5.8 
APP    B AMERICAN EAGLE OUTFITTERS INC -5.7 


Bottom 10 Retail Performers

To appreciate the level of competition in the space Wet Seal occupies you only have to observe that while making the list of "Rising Stars" they remained amongst the Bottom 10 Performers... Gadzooks was not on the lips of shoppers as the company sat astride the top of this category... Both Abecrombie & Fitch in the number two spot and American Eagle seem to have disconnected with the young adults that formerly made both these managements expand their presence and the case of the former invest in a catalog that became "Too Hot To Handle"... Wilson stripped, tanned and hung out the leather, but despite big seasonal promotions shoppers only waved, and that's why the company will seek covenant waivers... California recent recipient of fires, storms, strikes and the arrival of the "Govenator" left shoppers saying Factoy 2 U is not for us, and their CEO departed leaving uncertainty for the future... Mervyns needed more magic than they could muster and missed their "target"... Emergence from Chapter 11 and new management has not as yet gotten Franks Nursery to post results that would have us believe they have grow power... Deb Shops continue to exhibit lackluster sales as they strive to regain their merchandising appeal.



Industry Credit
Rating
Company TY LY
APP    F GADZOOKS INC -25.2 -2.4
HF    B BOMBAY COMPANY INC 3.0 18.0
APP    A ABERCROMBIE & FITCH CO -13.0 0.0
HF    F FRANKS NURSERY & CRAFTS INC -10.4 0.0
FN    A HANCOCK FABRICS INC 3.3 13.6
APP    B MOTHERS WORK INC / MOTHERHOOD MATERNITY -5.4 3.4
HF    A PIER 1 IMPORTS INC -4.9 3.8
FN    D JO ANN STORES INC 5.4 13.7
APP    B CACHE INC 3.0 11.0
APP    A CHRISTOPHER & BANKS CORP/FKA BRAUNS FASHIONS -7.0 -2.0


Falling Stars - Sharpest Decline

Gadzooks is struggling to pull out of an ever steepening rate of decline, but retains the top spot in both the Bottom 10 and Falling Stars lists, following closely is Abecrombie & Fitch and Franks Nursery, which all share the common thread of missing the right merchandising mix... While appearing on this list is not management's choice, on occasion it is the result of not exceeding the embarassingly good performances of a year ago, evidenced by Bombay Company, Hancock Fabrics, Jo Ann Stores and Cache... The harsh stormy weather during December kept the Moms to be at home safe and snug not daring the ice and snow or a possible slip that did just that for Mothers Work... Pier 1 was ready to sail into the season and expected to ride a wave of "sails" that failed to supply a boat load of traffic... Christopher & Banks private labels never made a good public showing and as a result neither did the company's comp sales, which were revised downward as the month progressed.



Industry Industry Highest Median Lowest
RETAIL SECTOR
26.2  2.7  -25.2 
APP Apparel Stores 26.2  2.1  -25.2 
CE Consumer Electronics 21.0  6.5  -2.0 
DEP Dept Store-Catalog Retail 14.8  1.5  -7.3 
DR Drug Stores 13.3  6.3  -2.5 
EAT Eating & Drinking Places 0.7  0.7  0.7 
FN Fabrics & Notions 5.4  4.4  3.3 
FW Footwear Retail 13.9  3.5  -3.8 
HF Home Furnishings 9.9  0.6  -10.4 
MM Mass Merchandisers-Retail 11.0  3.8  -3.2 
SR Specialty Retail 16.0  16.0  16.0 
SG Sporting Goods Retail 2.3  2.3  2.3 


Industry Performance

While Santa was not as generous this year as had been expected, he did focus more on the more conservative gifts, to the chagrin of the kiddies, as Apparel, Department Stores and Footwear led the parade in comps for the holiday season... Not to be left out, the teens and "gadget hungry" dads helped the recently depressed Consumer Electronics and Specialty Retailers celebrate the season... Mass Merchants contributed heavily to the value-conscious gift giver, though likely at a price as margin erosion is expected... Shoppers flew into Drug Stores looking for relief from the hectic holiday season, harsh winter weather and flu symptoms before ushering in the New Year... As has been the case all year long and particularly at this time of the year "home is where the heart is" as shoppers felt comfortable adding to their Home Furnishings... A ramp-up in Sporting Goods sales, which as a merchandise category lacked "hot products" to spur additional traffic, was constrained by families focusing on consumer electronics.



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.