Apparel Retailers

This current calendar year has not been kind to apparel retailers, who had reason for high hopes coming off a 2007 in which clothing sales of all sorts increased nearly across the board. Total apparel sales rose 3 percent last year to just under $200 billion, led by children’s clothing (6 percent gain) and menswear (4 percent), according to market research firm NPD Group. Dresses for women and girls and dress-up looks for men (suits, tailored clothing) were the big movers, notes Marshal Cohen, NPD’s chief industry analyst for apparel.

Results-bred optimism faded faster than a knock-off T-shirt, however. Fashion retailers began marking down spring and summer garments as early as March, and fall merchandise began showing up in stores prior to Memorial Day weekend.

This drop in consumer demand has been a boon for off-pricers like Ross Stores, which operates the Dress for Less chain, but middle-of-the-road retailers like Gap have found the going pretty rough. Gap sales fell 4.8 percent in the first quarter as same-store sales dropped 11 percent across Gap, Old Navy and Banana Republic units. During one four-week period this spring, Old Navy’s comps plunged 27 percent.