Shares of women’s clothing retailers traded mostly higher on Tuesday, despite more data showing consumers were reluctant to spend this holiday season.
The International Council of Shopping Centers said weekly same-store sales dropped 1.5 percent last week amid continued economic woes and wintry weather.
On a year-over-year basis, same-store sales fell 1.8 percent, according to the association’s weekly index, which tracks sales of about 40 retailers.
Same-store sales are sales at stores opened at least a year and are considered a key indicator of a retailer’s health.
In a client note, Thomas Weisel Partners analyst Liz Dunn said consumers have been reluctant to spend amid tighter credit and a weak housing market.
But looking ahead to 2009, Dunn said retailers will handle the year “more gracefully” than in 2008 by looking for ways to cut costs and control inventory.
“Inventory discipline is not optional, and almost every company seems to be focused on staying lean until demand returns, instead of attempting to predict when demand will return and building stocks ahead of that time,” Dunn wrote in a client note.
Also on the positive side, Dunn said lower gas prices have put money back in consumers’ pockets.
Shares of Limited Brands Inc. rose 19 cents to $9.69. Elsewhere, shares of Chico’s FAS Inc. gained 5 cents to $3.94.
Meanwhile, AnnTaylor Stores Corp.’s stock advanced 10 cents, or 2 percent, to $5.10, and Coldwater Creek Inc. declined 18 cents, or 6.6 percent, to $2.57.
Christopher & Banks Corp. rose 3 cents to $4.80.
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