Retail MONTHLY SAME STORE SALES Preliminary   06/07/2004

MAY 2004


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.

Industry Credit
Rating
Company YTD Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
May 2004 May 2003 May 2004 May 2003
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       



Companies Ranked by Industry

Credit
Rating
Apparel Stores Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
May 2004 May 2003 May 2004 May 2003
A  AEROPOSTALE INC  27.00  -1.50  54.10  34.50  57
A  CHICOS FAS INC  17.90  11.70  90.20  59.80  51
E  CASUAL MALE RETAIL GROUP INC/FKA DESIGNS INC  11.90    26.60    0
E  FILENES BASEMENT CORP/RETAIL VENTURES INC  11.60  -1.80  30.10  25.10  20
E  STEIN MART INC  11.10  -6.50  114.80  108.20  6
D  GAP INC  11.00  8.00  0.00  0.00  0
E  FASHION BUG  11.00  2.00  0.00  0.00  0
B  AMERICAN EAGLE OUTFITTERS INC  10.60  1.10  117.30  97.60  20
A  BEBE STORES INC  10.20  4.20  32.90  28.50  15
A  CLAIRES STORES INC  10.00  7.00  89.24  78.30  14
C  VICTORIAS SECRET STORES INC/LIMITED BRANDS  10.00  1.00  0.00  0.00  0
C  ANNTAYLOR STORES CORP  9.90  9.40  169.87  137.40  24
A  CHILDRENS PLACE RETAIL STORES  9.00  0.01  57.20  48.40  18
B  BUCKLE INC,THE  8.30  0.01  27.30  23.80  15
B  TALBOTS INC  8.10  -5.00  127.60  115.90  10
NR  BANANA REPUBLIC  8.00  2.00  0.00  0.00  0
D  BANANA REPUBLIC INC/THE GAP INC  8.00  2.00  0.00  0.00  0
A  PACIFIC SUNWEAR OF CALIFORNIA INC  7.80  13.20  72.40  61.10  18
A  MENS WEARHOUSE INC,THE  7.80  7.60  123.60  111.90  10
D  JOS A BANK CLOTHIERS INC /DE/  6.40  4.80  26.20  21.40  22
D  GAP INC,THE  6.00  10.00  1200.00  1100.00  9
D  CHARMING SHOPPES INC  5.00  -3.00  205.60  193.60  6
C  TJX COMPANIES INC  5.00  3.00  1100.00  975.00  13
B  DRESS BARN INC  4.00  0.01  73.90  68.80  7
B  CACHE INC  4.00  4.00  19.80  17.80  11
B  CATO CORP  4.00  -7.00  69.50  63.10  10
NR  OLD NAVY/THE GAP INC  4.00  13.00  0.00  0.00  0
C  LIMITED BRANDS INC  3.00  1.00  641.40  618.10  4
E  RETAIL VENTURES INC/ FKA VALUE CITY DEPARTMENT STORES IN  1.90  3.20  220.50  202.90  9
D  GOODYS FAMILY CLOTHING INC  1.30  3.50  99.40  96.00  4
E  LANE BRYANT INC  1.00  -11.00  0.00  0.00  0
A  ABERCROMBIE & FITCH CO  1.00  -7.00  111.50  93.10  20
C  EXPRESS INC/LIMITED BRANDS  0.01  -1.00  0.00  0.00  0
A  HOT TOPIC INC  -0.50  3.20  37.70  31.20  21
B  ROSS STORES INC  -1.00  0.01  319.00  296.00  8
A  GYMBOREE CORP  -1.00  2.00  36.60  34.40  6
C  CATHERINES INC/CHARMING SHOPPES  -1.00  2.00  0.00  0.00  0
F  UNITED RETAIL GROUP INC/DE  -1.00  -9.00  36.00  36.90  -2
D  FAMOUS FOOTWEAR  -2.20  -1.60  85.10  84.90  0
B  DEB SHOPS INC  -2.30  -6.20  25.60  26.10  -2
B  MOTHERS WORK INC / MOTHERHOOD MATERNITY  -3.00  4.70  50.00  47.00  6
A  S & K FAMOUS BRANDS INC  -3.70  6.00  13.80  13.90  -1
A  CHRISTOPHER & BANKS CORP/FKA BRAUNS FASHIONS  -6.00  1.00  32.40  29.80  9
F  WILSONS THE LEATHER EXPERTS INC  -6.40  -5.20  16.00  20.90  -23
11  EDDIE BAUER INC/CASE#03-11547  -7.00  -1.00  0.00  0.00  0
11  SPIEGEL INC/CASE #03-11540  -7.00  -1.00  109.30  150.90  -28
C  WET SEAL INC  -7.80  -25.00  33.00  37.00  -11
C  LIMITED STORES INC ,THE/LIMITED BRANDS  -11.00  1.00  0.00  0.00  0
11  GADZOOKS INC CASE# 04-31486  -19.50  5.10  12.70  23.90  -47

Credit
Rating
Consumer Electronics Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
May 2004 May 2003 May 2004 May 2003
D  SHARPER IMAGE CORP  1.00  19.00  51.40  45.00  14

Credit
Rating
Dept Stores & Catalogs Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
May 2004 May 2003 May 2004 May 2003
C  NORDSTROM INC  9.40  3.40  499.00  449.00  11
D  SAKS INC/FKA PROFFITTS INC  9.40  -1.60  431.30  389.90  11
D  JC PENNEY COMPANY INC  9.10  3.20  1042.00  960.00  9
B  KOHLS CORP  5.00  0.10  815.80  678.90  20
B  FEDERATED DEPARTMENT STORES INC/NEW  2.90  -0.80  1172.00  1137.00  3
E  BON TON,THE  2.60  -0.90  95.10  51.10  86
D  MARSHALL FIELDS  1.70  -3.00  178.00  174.00  2
D  STAGE STORES INC  1.00  -6.60  90.60  65.00  39
E  BON TON STORES INC  0.80  -0.90  95.10  51.10  86
E  ELDER BEERMAN STORES INC. NOW PART OF BON TON STORES INC  -1.40  1.50  0.00  42.60  -100
E  VALUE CITY DEPARTMENT STORE  -3.70  3.70  104.60  108.70  -4
C  SEARS ROEBUCK & COMPANY  -3.70  -1.90  2078.90  2180.00  -5
C  MAY DEPARTMENT STORES COMPANY INC  -3.80  -3.90  978.00  1005.00  -3
D  DILLARDS INC  -5.00  -7.00  511.40  536.60  -5
D  MERVYNS  -6.50  -3.80  243.00  258.00  -6
F  GOTTSCHALKS INC  -7.60  3.40  45.70  50.10  -9

Credit
Rating
Drug Stores Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
May 2004 May 2003 May 2004 May 2003
A  WALGREEN COMPANY INC  8.50  8.10  3176.00  2812.90  13
C  LONGS DRUG STORES CORP  3.10  -1.80  361.70  345.50  5

Credit
Rating
Hobby & Craft Retail Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
May 2004 May 2003 May 2004 May 2003
B  HANCOCK FABRICS INC  -9.00  5.10  28.00  30.80  -9

Credit
Rating
Footwear Retail Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
May 2004 May 2003 May 2004 May 2003
D  DSW SHOE WAREHOUSE INC.  7.80  4.50  85.70  69.10  24
D  PAYLESS SHOESOURCE INC  3.90  -10.00  246.70  236.50  4
C  SHOE CARNIVAL INC  0.50  -3.80  43.10  39.60  9
D  NATURALIZER RETAIL / SEE BROWN SHOE COMPANY  -3.60  0.50  16.50  17.10  -4

Credit
Rating
Home Furnishings Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
May 2004 May 2003 May 2004 May 2003
B  MICHAELS STORES INC  3.00  1.00  202.30  187.30  8
A  PIER 1 IMPORTS INC  -7.60  -1.80  133.61  132.02  1
B  HAVERTY FURNITURE COMPANIES  -8.10  -2.40  57.80  60.40  -4
B  BOMBAY COMPANY INC  -16.00  22.00  37.40  39.50  -5

Credit
Rating
Mass Merchandisers-Retail Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
May 2004 May 2003 May 2004 May 2003
B  COSTCO WHOLESALE CORP  16.00  4.00  3800.00  3200.00  19
B  BJS WHOLESALE CLUB  12.10  2.80  576.40  497.20  16
D  SAMS CLUB  11.80  1.80  2935.00  2599.00  13
D  BIG LOTS INC /FKA CONSOLIDATED STORES INC  7.40  0.30  323.30  287.80  12
B  WAL MART STORES INC  5.90  2.10  21425.00  18953.00  13
B  FREDS INC  5.20  4.80  106.30  92.20  15
B  WAL MART STORES  4.70  2.10  14388.00  12852.00  12
B  TARGET CORP/FKA DAYTON HUDSON  4.60  0.70  3544.00  3203.00  11
B  DOLLAR GENERAL CORP  4.00  4.90  568.20  507.20  12
D  PAMIDA HOLDINGS CORP  3.50  1.80  67.00  64.90  3
B  FAMILY DOLLAR STORES INC  3.50  3.60  411.50  364.10  13
D  SHOPKO STORES INC  3.20  -3.10  251.90  244.20  3
D  SHOPKO STORES  3.00  -4.70  184.90  179.30  3
D  DUCKWALL ALCO STORES INC  0.50  -1.10  36.80  36.70  0
E  FACTORY CARD & PARTY OUTLET CORP  -1.50  0.00  23.40  22.90  2

Credit
Rating
Sporting Goods Retail Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
May 2004 May 2003 May 2004 May 2003
D  WEST MARINE INC  6.00  -1.50  82.20  74.50  10

Credit
Rating
Specialty Retail Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
May 2004 May 2003 May 2004 May 2003
C  BATH & BODY WORKS/LIMITED BRANDS  1.00  3.00  0.00  0.00  0



Performance Insight


Industry Credit
Rating
Company Comp %
APP    A AEROPOSTALE INC 27.0 
APP    A CHICOS FAS INC 17.9 
MM    B COSTCO WHOLESALE CORP 16.0 
MM    B BJS WHOLESALE CLUB 12.1 
APP    E CASUAL MALE RETAIL GROUP INC/FKA DESIGNS INC 11.9 
MM    D SAMS CLUB 11.8 
APP    E FILENES BASEMENT CORP/RETAIL VENTURES INC 11.6 
APP    E STEIN MART INC 11.1 
APP    D GAP INC 11.0 
APP    E FASHION BUG 11.0 


Top 10 Retail Performers

Capitalizing on their strong April performances, Aeropostale and Chicos again top our list of Top 10 retail performers, driven by strong merchandising. It is not surprising that their respective share prices are also flying high - the old chicken or the egg conundrum? ... Costco consistently performs well but its brethren BJ's and Sams also shone in this category, perhaps reflecting the improving economy but also that cost conscious consumers are still seeking to save a buck or two. ... Other off-priced retailers, Filene's Basement and Stein Mart saw the benefit of a renewed interest in apparel offerings. ... Fashion Bug's merchandising of misses and plus sportswear which lured increased traffic, boosted its comps while Gap U.S. racked up a consistently strong performance. ... Big George, off the grill and into the malls, has pulled big and tall boys into the shopping arena, giving Casual Male a knockout 11.9% comp gain.



Industry Credit
Rating
Company TY LY
APP    A AEROPOSTALE INC 27.0 - 1.5
APP    E STEIN MART INC 11.1 - 6.5
APP    C WET SEAL INC - 7.8 - 25.0
FW    D PAYLESS SHOESOURCE INC 3.9 - 10.0
APP    E FILENES BASEMENT CORP/RETAIL VENTURES INC 11.6 - 1.8
APP    B TALBOTS INC 8.1 - 5.0
APP    E LANE BRYANT INC 1.0 - 11.0
MM    B COSTCO WHOLESALE CORP 16.0 4.0
APP    B CATO CORP 4.0 - 7.0
DEP    D SAKS INC/FKA PROFFITTS INC 9.4 - 1.6


Rising Stars - Most Improved

As you might expect, Aeropostale, Stein Mart and Costco, among our top ten performers for the month, also made our rising star category, though Aeropostale and Stein Mart had the luxury of measuring against low comps last year. ... Easy comparisons were also the order of the day for struggling Wet Seal, which continues to flounder in deep water and Lane Bryant, which continues to have difficulty stocking its shelves with fashionable spring/summer attire. ... Lux-fashions continues to dominate Saks racks causing register rings to hit new highs. ... Classic fashion brought to life by spring colors and a new look delivered seasonal success at Talbots. ... The off-price shopper found anything but dank and dreary selections in Filene's Basement, rocketing this retailer to the penthouse. ... Warmer than normal temperatures across much of the Southeast turned value conscious belles out in droves to take advantage of the values being offered at Cato. ... Looking to payless and outfit the whole family with summer footwear led families to run, not walk, to Payless ShoeSource.



Industry Credit
Rating
Company Comp %
APP    11 GADZOOKS INC CASE# 04-31486 - 19.5 
HF    B BOMBAY COMPANY INC - 16.0 
APP    C LIMITED STORES INC ,THE/LIMITED BRANDS - 11.0 
FN    B HANCOCK FABRICS INC - 9.0 
HF    B HAVERTY FURNITURE COMPANIES - 8.1 
APP    C WET SEAL INC - 7.8 
HF    A PIER 1 IMPORTS INC - 7.6 
DEP    F GOTTSCHALKS INC - 7.6 
APP    11 EDDIE BAUER INC/CASE#03-11547 - 7.0 
APP    11 SPIEGEL INC/CASE #03-11540 - 7.0 


Bottom 10 Retail Performers

Bankrupty is not a boon to some retailers, bombarding Gadzooks and Spiegel/Eddie Bauer for the month of May, both because of the absence of inventory liquidation sales which bolstered sales in the prior year. ... With interest rates rising and new home starts slowing, it is no wonder that companies focused on home decorating saw their comps falter. Bombay, Pier 1, Haverty Furniture and Hancock Fabrics all saw substantial comp declines with the usual merchandising, disappointing promotional events and timing of the Memorial Holiday being blamed. The calendar was also named as the cause for Gottschalks' comp drop rather than customers looking elsewhere for their "Gott"a-haves. ... "Limit"s on consumer spending and a change in promotional strategy brought double digit comp declines at Limited Stores although Limited Brands as a whole tapped into the secret desires of lingerie lovers at Victoria's Secret. ... With turnaround initiatives not yet visible, Wet Seal still makes our list of Bottom 10 retailers even though concurrently it ranks as a "Rising Star" after recovering from the great depths of a 25% comp decline to a "mere" 7.8% fall in the current month.



Industry Credit
Rating
Company TY LY
HF    B BOMBAY COMPANY INC - 16.0 22.0
APP    11 GADZOOKS INC CASE# 04-31486 - 19.5 5.1
CE    D SHARPER IMAGE CORP 1.0 19.0
FN    B HANCOCK FABRICS INC - 9.0 5.1
APP    C LIMITED STORES INC ,THE/LIMITED BRANDS - 11.0 1.0
DEP    F GOTTSCHALKS INC - 7.6 3.4
APP    A S & K FAMOUS BRANDS INC - 3.7 6.0
APP    NR OLD NAVY/THE GAP INC 4.0 13.0
APP    B MOTHERS WORK INC / MOTHERHOOD MATERNITY - 3.0 4.7
DEP    E VALUE CITY DEPARTMENT STORE - 3.7 3.7


Falling Stars - Sharpest Decline

Still trying to clear its stores of stale inventory bought last winter, The Bombay Company leads our falling stars for the month of May. ... Though showing a sharp comp store sales increase, the Sharper Image was looking at a very tough comparison to last year and Old Navy found it difficult to close "the gap" on last year's remarkable performance. ... A shift in promotional events surrounding Memorial Day proved to be a "gotcha" for Gottschalks for the month of May and it looks to make up the shortfalls in June. ... Approaching the one year anniversary of its shift to a female-only concept, Gadzooks' comps continue to be impacted by last year's mens liquidation sales. ... Mothers-to-be were not thrilled with the spring selections being offered at Mothers Work, seeking other outlets to satisfy their cravings. ... Male shoppers found the value offerings at S&K Famous Brands not very compelling at any price. ... Few and fewer shoppers are able to find any value at Value City Department Stores as the company has made our falling stars club for the second consecutive month.



Industry Industry Highest Median Lowest
RETAIL SECTOR
27.0  2.8  - 19.5 
APP Apparel Stores 27.0  3.6  - 19.5 
CE Consumer Electronics 1.0  1.0  1.0 
DEP Dept Stores & Catalogs 9.4  0.6  - 7.6 
DR Drug Stores 8.5  5.8  3.1 
FW Footwear Retail 7.8  2.2  - 3.6 
FN Hobby & Craft Retail - 9.0  - 9.0  - 9.0 
HF Home Furnishings 3.0  - 7.2  - 16.0 
MM Mass Merchandisers-Retail 16.0  5.6  - 1.5 
SR Specialty Retail 1.0  1.0  1.0 
SG Sporting Goods Retail 6.0  6.0  6.0 


Industry Performance

The rainy April that forced shoppers into malls in droves gave way to May, which blossomed with an expansive color palette and fun frocks. After months in the doldrums, both Apparel and Department Stores carried the forward April momentum into May while their more cost conscious cousins value shopped at the "clubs" and other Mass Merchants. Well shod feet followed suit, forcing Footwear Retail comps higher as well. On the flip side, Home Furnishings, which had benefited for months from low interest rates and a focus on hearth and home, faltered under the weight of ill-favored merchandise offerings and tougher comparisons.



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.


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