As merchants reported their sales figures, confirming fears that the holiday season was the weakest in four decades, the malaise cut through practically all areas from kitchen gadget stores to jewelry purveyors and teen apparel retailers.
The deep discounts that began well before the official start of the holiday season spurred a number of merchants to cut their earnings outlooks on Thursday, fueling more concerns about the health of the industry.
"This suggests that the lower income group is feeling the pinch more than we thought and this is clearly reflected in the lower-than-expected numbers at Wal-Mart," said Ken Perkins, president of research company RetailMetrics LLC. "I think it says the economy is in more dire straits than we thought."
Wal-Mart - Same-store sales, or sales at stores opened at least a year, rose 1.2%. Excluding the impact of declining gasoline prices at the pump, the gain was 1.7%, well below the expected 2.8% increase, excluding fuel.
Costco - 4% decline in same-store sales, but excluding the impact of lower gas prices and currency fluctuations, it actually posted a 4% gain.
Sears - December same-store sales dropped 7.3%, and 12.8% drop at domestic Sears stores.
Macy's - Same-store sales fell 4% percent in December. For the combined November-December period, same-store sales were down 7.5%. Cut its fourth-quarter and full-year earnings outlook due to heavy markdowns and announced plans to close 11 underperforming stores.
Saks Inc. - Same-store sales dropped 19.8% in December.
Limited Brands Inc. - 10% drop in same-store sales, also lowered its fourth-quarter earnings outlook.
Gap Inc. - 14% drop in same-store sales, worse than the 9.3 percent decline that analysts had expected. It also cut its earnings outlook.
Williams-Sonoma Inc. - Same-store sales dropped more than 24 percent for the eight-week period ended Dec. 28 and warned its fourth-quarter profit will likely come in at the low end of expectations.
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