Retail Sector Down After Holiday Same-store Sales Results, Outlook Announcements, Analyst Downgrades

By Markets MarketWatch Pulse

Major retailers across the sector are down in Friday trading after analyst downgrades, disappointing holiday season same-store sales and quarterly forecasts that are causing concern. American Eagle Outfitters, Inc. has plummeted 16% after it said it could miss fourth-quarter guidance. The company, which reports earnings on March 2, said same-store sales are up 4% for the quarter so far, below the FactSet consensus of 4.9%. Gap Inc. shares are down 15.2% in trading after the company reported negative same-store sales across its three brands - Gap Global, Old Navy, and Banana Republic. Nordstrom Inc. is down 4.5% after a week in which its stock was downgraded by anumber of analysts. And Macy's Inc. is down 2.9% after it said that holiday same-store sales were down 4.7%, though there had been some positive reaction to the company's announced cost-cutting measures. Also down today are Kohl's Corp. (6.4%), Coach Inc. (2.6%), Tiffany & Co. (3.1%), Target Corp. (2.8%), and Kate Spade & Co. (2.2%).

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