WASHINGTON, Jan 2: Apparel retailers saw a boost of no more than $200 million in sales from cold weather just before the new year and with product markdowns above 50 per cent it will be very difficult to make up margins in the coming months, industry researchers said.
Shoppers came out to spend on winter apparel in the last two weeks of December as cold weather finally rolled in after an unseasonably warm run-up to the holiday.
Holiday sales are a major influence on retailers’ financial health, and department stores like JCPenney and Macy’s are some of the most affected from warm weather slowing apparel sales, according to consultants.
Winter storms in the Midwest and Northeastern United States, some bringing more than a foot (30 cm) of snow, boosted spending on apparel by about $200 million, contributing around 0.1 of a per centage point to this season’s 3.4 per cent growth over last year, calculated Craig Johnson, president of retail consulting firm Consumer Growth Partners.
“Let’s just say it’s better than a sharp stick in the eye,” Johnson said, adding that while the year-end bump was good for outerwear sales, it is too little to save “an otherwise sorry season.”
Despite some retailers’ apparel sales troubles, the athletic leisure players including company Lululemon Athletica fared well in the third quarter according to filings and consultants according to a news agency.
Cleared by nilufer