That Naughty and Nice list sure came in handy for certain apparel retailers, with shoppers flocking to American Eagle, far exceeding management expectations due to superb merchandising assortments even with reductions in promotional activity. ... One for my bebe (stores), was the call of the holiday gift giver, with bebe's contempary apparel finding favor. ... Effective advertising and strong merchandinging continued the "top" trends for both Chico's and Neiman Marcus. ... With Mom's bedecked and bejeweled, it was time for kids and dads to don their gay apparel, looking toward Children's Place with rising enthusiasm for the brand, and to JoS A. Bank for its classic styles. ... Off-price retailers Stein Mart and Burlington Coat Factory also benefitted from a focus on holiday and traditional merchandising assortments as well as effective initiatives. ... Last minute gift givers found their groove at Bath and Body Works, taking advantage of their seasonal selections and new product launches. ... Christmas, scrapbooking and kids crafts pushed Michael's comps through the roof, proving home is really where the heart is.

There are some truly stellar performers making our list of Rising Stars, those that managed to achieve double digit growth on top of solid high single digit gains last year, namely bebe stores, Children's Place and Michaels Stores. ... Others, such as American Eagle, Burlington Coat, Abercrombie & Fitch and Deb Shops, benefitted from much weaker comparisons. ... Improved staffing was a major boon for Abercrombie. ... Despite debilitating snowstorms in select markets, fashion accessories, misses and mens sportswear as well as childrens bolstered Bon Ton while Victoria's Secret was bumped when someone blabbed about her holiday sleepwear offerings. ... Gadzooks makes our rising list with only a 3.7% comp decline, having nowhere else to go but up after last year's dismal comps of negative 25%.

The absence of a denim sales event moved the Company out of the "Express" lane while other, formerly "hot" retailers such as Sharper Image and Bombay were plagued by merchandising difficulties (including pricing and inventory position) and a lack of must have new product. ... The fickle teen market wagged its finger in the face of Wet Seal due to less traffic and Hot Topic, albeit consistent with guidance, due to fewer gift card purchases and sluggishness in mens. ... Christopher & Banks and Catherines fell out of favor with female shoppers, blamed on a calendar shift and poor sell throughs of coats, respectively ... ShopKo Stores has continued its sluggishness, reporting poor December results and antipating further comp declines in January. ... Ineffective traffic drivers that failed to showcase store level improvements made over the past year coupled with slow PC sales, shortages of video game hardware and intense competition short-circuited Circuit City's comps. ... Aggressive promotions and planned SKU reductions left the shelves bare at Pier 1, adding to the comp plunge.

Our list of Falling Stars is filled with companies who are coming off of stellar performances last year making their fall all the more precipitous. ... Sharper Image reported the greatest fall as logistics problems coupled with lower interest in "gadgets" thrust the company downward. ... In spite of the generally favorable results reported in the Apparel Industry, Christmas shoppers were 'cool' to the offerings of Hot Topic, and showed their disappointment in Express Inc.'s decision to not repeat their denim sale this year, by going elsewhere. ... Shoppers continued to be less enthusiastic regarding the selections at Ann Taylor Stores, preferring to some degree the offerings of Ann Taylor Loft. ... The fashion trendy apparel at Banana Republic was not 'ripe' for the picking this year as teens moved on to more chic assortments. ... The Bombay Club is becoming a regular to our falling star list, troubled by continuing merchandising and inventory issues. ... Surprisingly two Drug Store chains made the falling list, but for vastly different reasons, as the recovery at Rite Aid is beginning to be not so 'rite', while at Walgreen's the comparison to a spectacular prior year was difficult to say the least.

It appears that there was more Ho-Hum this Christmas than Ho-Ho-Ho for most retailers as evidenced by the Holiday sales reported in December. ... However, Santa was very good to the more fashion-conscious teens and young women in the Apparel Industry, and women preferred the more upscale offerings in Department Stores, as both categories finished the year with strong performances. ... Not as fortunate were the 'gadget hungry' dads and sports enthusiasts, as comps in the Sporting Goods and Consumer Electronics industries turned negative for the month. ... Meanwhile the value-conscious gift giver was very cautious this year, what with the war and uncertainty in the economy as Mass Merchant comps dropped significantly from last years highs. ... In spite of the flu vaccine shortage scare, December proved to be relatively flu-free with Drug Stores reporting a small increase in comps.