USA:U.S. apparel retailers cite slower consumer spending

Upscale chains Saks Inc and Neiman Marcus posted better quarterly profits as higher-end customers and tourists shopped, but even they saw sales weaken for the month of February.

Meanwhile, Brown Shoe Co said profit rose but was weaker than expected and Chico's FAS Inc turned in a quarterly loss. Chico's, which operates White House/Black Market as well as its namesake stores, said February sales at stores open at least a year fell more than expected.

U.S. retailers have come under pressure this year as higher gasoline and food prices and fears of recession have led consumers to cut back. Apparel retailers have been further hit as clothing styles have failed to attract buyers.

Saks and privately held Neiman Marcus said the spending slowdown was affecting all levels of business but was especially evident at the lower end.

“Our sense is that the aspirational customer has pulled back somewhat in response to concerns about the U.S. economy and stock and housing markets,” Neiman Marcus Chief Executive Burton Tansky said during a conference call.

Neiman Marcus said same-store sales for its namesake and Bergdorf Goodman stores fell 7.4 percent in February. Saks said its same-store sales rose 3.4 percent in February – better than the 0.2 percent drop analysts had expected, but weakening from the fourth quarter's 9 percent rise.

“Sales increases in several of our previously high-growth rate businesses such as handbags, footwear and men's have slowed,” Saks Chairman Steve Sadove said.

One bright spot was intimate apparel maker Maidenform Brands Inc, which reported Tuesday that growth in its wholesale branded business helped its quarterly profit double.