During the second half of Q4, a lack of winter weather in most of the retailer’s major markets contributed to a sharp fall-off in sales and merchandise margins. Sales trends picked up in the week before the holiday but were described as “particularly soft” after Christmas. Comps fell 2.1% and merchandise margins slipped 190 b.p. on product cost inflation and higher promotional activity for the period ended Jan. 1.

Apparel comps declined mid-single digits; footwear and hardgoods were off ... Log in to view full article.