Retail MONTHLY SAME STORE SALES Preliminary   09/02/2004

AUGUST 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
Aug 2004 Aug 2003 Aug 2004 Aug 2003
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       
                       



Companies Ranked by Industry

Credit
Rating
Apparel Stores Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Aug 2004 Aug 2003 Aug 2004 Aug 2003
B  AMERICAN EAGLE OUTFITTERS INC  23.90  -10.40  208.40  155.60  34
A  CHILDRENS PLACE RETAIL STORES  21.00  1.00  86.50  66.70  30
A  BEBE STORES INC  9.20  7.90  31.00  30.10  3
F  WILSONS THE LEATHER EXPERTS INC  9.00  -7.30  21.10  22.40  -6
A  MENS WEARHOUSE INC,THE  9.00  8.80  96.50  85.00  14
C  VICTORIAS SECRET STORES INC/LIMITED BRANDS  8.00  8.00  0.00  0.00  0
A  CLAIRES STORES INC  7.00  8.00  98.99  87.66  13
B  BUCKLE INC,THE  6.70  -0.60  54.50  48.10  13
D  JOS A BANK CLOTHIERS INC /DE/  6.40  8.60  21.80  17.40  25
A  AEROPOSTALE INC  6.20  1.60  112.10  87.40  28
C  TJX COMPANIES INC  4.00  1.00  1100.00  995.00  11
E  LANE BRYANT INC  4.00  -12.00  0.00  0.00  0
A  PACIFIC SUNWEAR OF CALIFORNIA INC  3.70  15.60  155.20  136.70  14
A  CHICOS FAS INC  3.60  19.40  76.90  56.30  37
D  GOODYS FAMILY CLOTHING INC  3.50  0.03  94.10  87.10  8
E  STEIN MART INC  2.40  -7.10  91.60  92.90  -1
E  CASUAL MALE RETAIL GROUP INC/FKA DESIGNS INC  1.80  0.00  21.80  21.40  2
E  FILENES BASEMENT CORP/RETAIL VENTURES INC  1.60  5.80  26.97  24.76  9
D  BANANA REPUBLIC INC/THE GAP INC  0.01  8.00  0.00  0.00  0
D  GAP INC  0.01  1.00  0.00  0.00  0
B  DRESS BARN INC  0.01  -1.00  51.60  50.60  2
B  CACHE INC  0.01  5.00  14.40  13.40  7
B  CATO CORP  0.01  -9.00  51.70  48.80  6
C  GAP INC,THE  -1.00  4.00  1230.00  1220.00  1
NR  OLD NAVY/THE GAP INC  -1.00  6.00  0.00  0.00  0
B  LIMITED BRANDS INC  -2.00  -2.00  577.80  575.70  0
D  CHARMING SHOPPES INC  -2.00  -6.00  164.80  166.00  -1
F  UNITED RETAIL GROUP INC/DE  -2.00  -8.00  24.10  24.90  -3
B  DEB SHOPS INC  -2.40  -15.10  29.90  30.30  -1
A  GYMBOREE CORP  -3.00  -3.00  44.80  42.80  5
C  CATHERINES INC/CHARMING SHOPPES  -3.00  -7.00  0.00  0.00  0
A  S & K FAMOUS BRANDS INC  -3.80  7.00  11.00  10.60  4
E  RETAIL VENTURES INC/ FKA VALUE CITY DEPARTMENT STORES IN  -4.00  4.20  209.40  205.10  2
A  CHRISTOPHER & BANKS CORP/FKA BRAUNS FASHIONS  -4.00  -1.00  29.80  27.30  9
C  ANNTAYLOR STORES CORP  -4.50  8.20  115.31  104.60  10
B  TALBOTS INC  -4.60  -8.70  86.80  87.80  -1
A  ABERCROMBIE & FITCH CO  -5.00  -11.00  212.10  190.40  11
D  FAMOUS FOOTWEAR  -5.50  2.00  133.40  135.80  -2
E  FASHION BUG  -6.00  -1.00  0.00  0.00  0
B  ROSS STORES INC  -8.00  2.00  312.00  315.00  -1
A  HOT TOPIC INC  -8.70  11.80  66.60  61.50  8
B  MOTHERS WORK INC / MOTHERHOOD MATERNITY  -13.00  -1.70  39.00  41.70  -6
F  WET SEAL INC  -14.80  -10.70  39.50  50.40  -22
C  LIMITED STORES INC ,THE/LIMITED BRANDS  -16.00  -13.00  0.00  0.00  0
C  EXPRESS INC/LIMITED BRANDS  -18.00  -10.00  0.00  0.00  0

Credit
Rating
Consumer Electronics Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Aug 2004 Aug 2003 Aug 2004 Aug 2003
C  SHARPER IMAGE CORP  -6.00  9.00  43.30  38.20  13

Credit
Rating
Dept Stores & Catalogs Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Aug 2004 Aug 2003 Aug 2004 Aug 2003
A  NEIMAN MARCUS GROUP INC  14.70  7.60  240.00  209.00  15
D  STAGE STORES INC  8.10  -7.30  105.70  71.50  48
B  NORDSTROM INC  7.20  3.20  431.70  402.60  7
D  JC PENNEY COMPANY INC  3.80  6.50  1540.00  1298.00  19
D  SAKS INC/FKA PROFFITTS INC  1.70  0.80  413.50  401.60  3
F  GOTTSCHALKS INC  0.10  1.00  47.29  47.20  0
B  KOHLS CORP  -0.70  3.20  881.60  773.50  14
B  FEDERATED DEPARTMENT STORES INC/NEW  -2.40  -0.80  1047.00  1078.00  -3
E  ELDER BEERMAN STORES INC. NOW PART OF BON TON STORES INC  -3.00  -9.50  40.40  41.40  -2
E  BON TON STORES INC  -4.60  2.40  86.20  48.00  80
E  BON TON,THE  -4.60  2.40  45.80  48.00  -5
D  DILLARDS INC  -5.00  -4.00  553.34  575.40  -4
C  SEARS ROEBUCK & COMPANY  -6.10  3.90  1910.00  2100.00  -9
C  MAY DEPARTMENT STORES COMPANY INC  -6.70  -3.20  1053.90  953.80  10
E  VALUE CITY DEPARTMENT STORE  -7.60  4.20  114.29  205.10  -44

Credit
Rating
Drug Stores Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Aug 2004 Aug 2003 Aug 2004 Aug 2003
A  WALGREEN COMPANY INC  9.70  9.60  3202.85  2008.48  59

Credit
Rating
Hobby & Craft Retail Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Aug 2004 Aug 2003 Aug 2004 Aug 2003
C  HANCOCK FABRICS INC  0.20  -0.80  30.70  30.60  0
D  JO ANN STORES INC  -2.90  9.80  120.50  122.80  -2

Credit
Rating
Footwear Retail Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Aug 2004 Aug 2003 Aug 2004 Aug 2003
D  DSW SHOE WAREHOUSE INC.  2.00  7.60  68.15  56.48  21
C  SHOE CARNIVAL INC  1.50  5.10  76.20  70.10  9
D  PAYLESS SHOESOURCE INC  -6.90  -4.10  218.00  232.70  -6
D  NATURALIZER RETAIL / SEE BROWN SHOE COMPANY  -7.10  -0.40  11.60  8.10  43

Credit
Rating
Home Furnishings Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Aug 2004 Aug 2003 Aug 2004 Aug 2003
B  MICHAELS STORES INC  5.00  1.00  205.10  185.70  10
B  PIER 1 IMPORTS INC  -2.80  -6.00  140.42  132.71  6
B  BOMBAY COMPANY INC  -19.00  18.00  35.40  37.70  -6

Credit
Rating
Mass Merchandisers-Retail Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Aug 2004 Aug 2003 Aug 2004 Aug 2003
B  BJS WHOLESALE CLUB  4.50  10.90  534.00  496.66  8
B  FREDS INC  3.40  7.30  105.70  94.30  12
B  COSTCO WHOLESALE CORP  3.00  8.00  3650.00  3410.00  7
B  DOLLAR GENERAL CORP  2.80  4.50  570.70  514.70  11
B  SAMS CLUB  2.70  8.20  2756.00  2651.00  4
B  TARGET CORP/FKA DAYTON HUDSON  1.80  5.70  3442.00  3632.00  -5
B  WAL MART STORES INC  0.50  6.90  21199.00  19533.00  9
B  WAL MART STORES  0.10  6.60  14296.00  13405.00  7
B  FAMILY DOLLAR STORES INC  -0.10  6.10  406.10  374.00  9
D  PAMIDA HOLDINGS CORP  -0.20  5.90  60.70  60.70  0
D  SHOPKO STORES INC  -0.20  1.40  254.80  256.20  -1
D  SHOPKO STORES  -0.20  0.10  194.10  195.50  -1
E  FACTORY CARD & PARTY OUTLET CORP  -0.60  0.00  14.50  14.00  4
D  BIG LOTS INC /FKA CONSOLIDATED STORES INC  -2.00  4.80  289.20  281.00  3
D  DUCKWALL ALCO STORES INC  -2.70  5.10  30.50  31.10  -2

Credit
Rating
Sporting Goods Retail Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Aug 2004 Aug 2003 Aug 2004 Aug 2003
D  WEST MARINE INC  -6.40  1.10  56.80  59.20  -4

Credit
Rating
Specialty Retail Monthly Comp
Change - %
Net Sales
(in millions)
Sales
% Change
Aug 2004 Aug 2003 Aug 2004 Aug 2003
C  BATH & BODY WORKS/LIMITED BRANDS  8.00  2.00  0.00  0.00  0



Performance Insight


Industry Credit
Rating
Company Comp %
APP    B AMERICAN EAGLE OUTFITTERS INC 23.9 
APP    A CHILDRENS PLACE RETAIL STORES 21.0 
DEP    A NEIMAN MARCUS GROUP INC 14.7 
DR    A WALGREEN COMPANY INC 9.7 
APP    A BEBE STORES INC 9.2 
APP    F WILSONS THE LEATHER EXPERTS INC 9.0 
APP    A MENS WEARHOUSE INC,THE 9.0 
DEP    D STAGE STORES INC 8.1 
SR    C BATH & BODY WORKS/LIMITED BRANDS 8.0 
APP    C VICTORIAS SECRET STORES INC/LIMITED BRANDS 8.0 


Top 10 Retail Performers

No longer an endangered species, American Eagle's comps just ate market share... Targeted inventory management coupled with value merchandising was the combination that did the trick for Children's Place, a strategy they hope is long lived... Neiman's fan club has taken a liking to their private brands as direct to consumer sales reflect and these folks have money to spend... Walgreen is just that wall to wall green when it comes to posting front end comps, which typically translates to higher margins... Bebe seems to have found a way to corral mall traffic that has been otherwise soft... Wilsons closed 111 stores, a key factor is seeing comps rise, by the way, those promotional sales didn't hurt either... Mens Warehouse comps in part reflect the movement in men's wear to dress up more and that often includes a sport coat and new slacks... Stage Stores comps were driven by a shift in the Texas Tax Holiday weekend... After Victoria's Bath & Body treatment you know she's slipping into a fashionalbly silky "unmentionable" as both companies comps hold firm.



Industry Credit
Rating
Company TY LY
APP    B AMERICAN EAGLE OUTFITTERS INC 23.9 - 10.4
APP    A CHILDRENS PLACE RETAIL STORES 21.0 1.0
APP    F WILSONS THE LEATHER EXPERTS INC 9.0 - 7.3
APP    E LANE BRYANT INC 4.0 - 12.0
DEP    D STAGE STORES INC 8.1 - 7.3
APP    B DEB SHOPS INC - 2.4 - 15.1
APP    E STEIN MART INC 2.4 - 7.1
APP    B CATO CORP 0.0 - 9.0
APP    B BUCKLE INC,THE 6.7 - 0.6
DEP    A NEIMAN MARCUS GROUP INC 14.7 7.6


Rising Stars - Most Improved

Without question our first two rising stars are double digit winners from our Top 10 list... Wilsons' u-turn to positive comps is acknowledged by its Most Improved status... Stage Stores got a Texas sized boost from the tax holiday shift as did Stein Mart... Women found compelling fall assortments at Lane Bryant as evidenced by comp store sales growth aided by little discounting... Cato Corporation weathered a stormy month weatherwise and a late Labor Day, taking advantage of the shift of tax free holidays... Junior misses were significanly happier with the fresh new looks "for back to school" being offered at Deb Shops, though comps remain negative, and at The Buckle... There were no "n"eedless "m"arkdowns at Neiman Marcus as comps doubled over one year ago.



Industry Credit
Rating
Company Comp %
HF    B BOMBAY COMPANY INC - 19.0 
APP    C EXPRESS INC/LIMITED BRANDS - 18.0 
APP    C LIMITED STORES INC ,THE/LIMITED BRANDS - 16.0 
APP    F WET SEAL INC - 14.8 
APP    B MOTHERS WORK INC / MOTHERHOOD MATERNITY - 13.0 
APP    A HOT TOPIC INC - 8.7 
APP    B ROSS STORES INC - 8.0 
DEP    E VALUE CITY DEPARTMENT STORE - 7.6 
FW    D NATURALIZER RETAIL / SEE BROWN SHOE COMPANY - 7.1 
FW    D PAYLESS SHOESOURCE INC - 6.9 


Bottom 10 Retail Performers

Despite the introduction of new merchandise and rising average transaction size, double-digit growth in Internet sales and success with Bombay "Kids", comps at the Bombay Company remained mired in the muddy waters of our bottom dwellers... At both Express and Limited apparel sales continued to fall evidencing a market share shift to competitors in their peer group... Wet Seal's performance has been adrift at sea for some number of months and as these comps reflect, management has yet to find its compass... Management's work is never done as increased competition in the maternity category has kept Mothers Work laboring to attract market share... The hot and muggy days of August were not enough to keep customers from their cool reception to Hot Topic's offerings nudging it into our celler dwellers... Ross Stores finally found and removed the bugs in its "Core Merchandising System" in August, however, expect the residual effects to haunt the company through the next six months... Value City has not been able to sell consumers on the idea that they are what their name says and negative comps have them keeping company with our other Bottom 10... A double whammy, a Labor Day shift and catalog mailings naturally put Nauralizer Retail/Brown Shoe on this unenviable list... Payless is what Duane Cantrell is experiencing after reporting comps along with a company-wide restructuring.



Industry Credit
Rating
Company TY LY
HF    B BOMBAY COMPANY INC - 19.0 18.0
APP    A HOT TOPIC INC - 8.7 11.8
APP    A CHICOS FAS INC 3.6 19.4
CE    C SHARPER IMAGE CORP - 6.0 9.0
APP    C ANNTAYLOR STORES CORP - 4.5 8.2
FN    D JO ANN STORES INC - 2.9 9.8
APP    A PACIFIC SUNWEAR OF CALIFORNIA INC 3.7 15.6
DEP    E VALUE CITY DEPARTMENT STORE - 7.6 4.2
APP    B MOTHERS WORK INC / MOTHERHOOD MATERNITY - 13.0 - 1.7
APP    A S & K FAMOUS BRANDS INC - 3.8 7.0


Falling Stars - Sharpest Decline

Bombay, Hot Topic, Value City and Mothers Work have all been discussed earlier and we are sparing them further commments hoping the Fall will not fail them again... Chico delayed their mailing and suffered the Labor Day shift along with their brethren, but nonetheless despite a visit from Charley comps remained positive... Sharper Image comps dulled albeit sales rose as some shift in sales has occured from brick & mortar locations to the internet... AnnTaylor is looking to their fall collection and marketing initiatives to get comps into the black... Jo Ann had her 60th birthday celebration last year and found comps tough to match absent this promotion... PacSun was up against last year's comps of 15.6% and while comps were in the black this year, the comparison left them labeled a Falling Star... S&K's footprint from Maine to Florida and west to Texas had them bumping into hurricane Charley and absent the Tax Holiday weekend, saw comps fall into red ink.



Industry Industry Highest Median Lowest
RETAIL SECTOR
23.9  - 0.2  - 19.0 
APP Apparel Stores 23.9  - 0.0  - 18.0 
CE Consumer Electronics - 6.0  - 6.0  - 6.0 
DEP Dept Stores & Catalogs 14.7  - 0.3  - 7.6 
DR Drug Stores 9.7  9.7  9.7 
FW Footwear Retail 2.0  - 2.6  - 7.1 
FN Hobby & Craft Retail 0.2  - 1.4  - 2.9 
HF Home Furnishings 5.0  - 5.6  - 19.0 
MM Mass Merchandisers-Retail 4.5  0.9  - 2.7 
SR Specialty Retail 8.0  8.0  8.0 
SG Sporting Goods Retail - 6.4  - 6.4  - 6.4 


Industry Performance

Consumers reflecting declining confidence and insecurity about jobs and a stalled economic rebound kept their wallets closed last month. Back to school sales that so many retailers were counting on just didn't materialize as kids and parents left apparel hanging and sporting goods on the shelf. One exception was the pick-up in consumer electronics with computers and accesories a must for students of all ages. Also, gas prices hit price point peaks that made filling up the car, pick-up or SUV just short of a capital expenditure. The result was less roaming and more targeted destination shopping.



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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