Wal-Mart and other US retailers today posted holiday sales largely in line with lowered forecasts as the biggest shopping month of the year proved disappointing.
Women's clothing retailer Talbots lowered its quarterly earnings forecast after monthly sales plunged 9.1 per cent at stores open at least one year.
Apparel retailers, which generate a big chunk of their profits over the holiday period, also struggled to boost sales in a sluggish economy that has crimped consumer spending.
Limited Brands Inc - which owns Victoria's Secret, Express and Bath & Body Works - said its December same-store sales were flat.
Analysts expect more warnings in the next few weeks after a dismal holiday shopping season that is likely to show the smallest sales gain in more than 30 years. Most retailers operate on a fiscal year that ends in January to cover the holiday period and the big shopping days after Christmas.
Retailers carried light inventories this season in hopes of avoiding the clearance sales that have marred past seasons, but some stores were forced to take steep markdowns anyway as consumers held out for big bargains.