January Sales Roundup

If January sales reports are any indication, 2008 is off to a slow start. Most of the publicly traded companies tracked by MULTICHANNEL MERCHANT struggled to increase sales—particularly in their direct businesses.

January direct sales for J.C. Penney Co. increased 3.6% on a comparable four-week basis. But if you include last year’s 53rd week, the general merchant’s direct sales decreased 17.7%, to $200 million, compared to $243 million for last year’s five-week January period. Internet sales rose 19.1%, which was above company expectations.

Dallas-based luxury merchant Neiman Marcus Group reported a slight decrease – 0.5% -- in January sales for Neiman Marcus Direct, which consists of the print catalog and online operations for Neiman Marcus and Horchow as well as the Bergdorf Goodman Website. But total January revenue for the cataloger/retailer increased 5.6%, to $290 million.

Jos. A. Bank Clothiers is usually a solid performer, but not this month. The Hampstead, MD-based merchant’s sales for January sank 17.1%, to $34.3 million, compared with $41.4 million last year. What’s more, direct sales for the menswear cataloger/retailer plummeted 18.6%. Same-store sales fell 1.2%.

January sales for Victoria’s Secret Direct fell 27% due to the extra week in last year’s result, according to Amie Preston, vice president of investor relations for Columbus, OH-based parent company Limited Brands. On a comparable four-week basis, sales at Victoria’s Secret Direct decreased 8%. Preston said the company is making progress addressing operational issues with its new direct distribution center. Problems at the DC have affected the merchant’s sales since the facility opened last August.

New Albany, OH-based apparel retailer Abercrombie & Fitch saw its January sales drop 13%, to $219.7 million, compared with $252.3 million for the five-week month last year. Same-store sales for the month were flat. But A&F’s direct business were through the roof: Total direct-to-consumer sales rose 33%, to $24.4 million for the four-week period compared to last year’s five-week period.

And it was business as usual for San Francisco-based Sharper Image Corp.: More sales decreases. Total company sales in January for the electronic gifts merchant sunk 23%, to $22.2 million, compared to $28.7 million in January 2007. Same-store sales were down 11%. The company did not break out specific figures for catalog/direct marketing (including wholesale) and Internet sales.