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Aug. 6, 2007, 12:01 a.m. EDT

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Edited by Robin Goldwyn Blumenthal

Dates to Watch For | Review | Follow-Up
Consensus Estimates | Coming Earnings | U.S. Economic Calendar

THE COMPETITION FOR TEEN DOLLARS during the back-to-school season is always fierce, but this year it could get tougher -- in particular for specialty-apparel retailers.

Consumer spending on clothing and accessories is expected to be flat with the year-earlier total, $231, according to the National Retail Federation.

preview

"It seems like things have stalled," says Dana Telsey, head of Telsey Advisory Group, who is conducting an 11-city tour of retailers during the back-to-school season. Her early product, price and presentation rankings are so far slightly lower than last year's. That could result in August same-store sales below the previous year's -- which were 4% higher than 2005's.

There's been more than a tripling in the number of teen stores, mostly at malls, since January 1999, says Bob Buchanan, a retailing analyst at A.G. Edwards. He notes that while growth in the teen-population demographic has been historically strong, it's expected to be negative for the 10 years through 2015.

While baby-doll tops, layering and dresses are expected to be big fashion choices for fall, Buchanan points out that they are "variations on a theme" of items that have already debuted.

The expected retail softness comes amid concern over gas prices, housing and the subprime-mortgage mess, and at a time when Telsey expects that competition from department stores, particularly Kohl's /zigman2/quotes/210414114/composite KSS -2.89% , J.C. Penney and Bloomingdale's, a unit of Macy's /zigman2/quotes/201854387/composite M -3.24% , will heat up for the $7.6 billion of apparel-and-accessories spending dollars. Who else might benefit? TJX /zigman2/quotes/203136811/composite TJX -1.57% and Target /zigman2/quotes/207799045/composite TGT -2.56% .

Coming U.S. Auctions
Day Yields (%)
When Last
Issued * Auction
M
$21.0 bil 3-month 4.755 4.825
$18.0 bil 6-month 4.730 4.800
W
$13.0 bil 10-year 4.710 4.500
Th
$9.0 bil 29 yr. 9-mo 4.863 4.750
* As of Friday afternoon.

Monday 6

Markets in Canada are closed.

BMC Software reports first-quarter results after the market closes.

Tuesday 7

The Fed's policy-making committee meets, and is expected to hold the Fed-funds target rate at 5.25%. Attention will be paid to whether any mention of the subprime and credit market turmoil is made in the statement. Lehman Brothers sees only a modest acknowledgment of market developments, with the growth and inflation outlook about unchanged.

/zigman2/quotes/210414114/composite
US : U.S.: NYSE
$ 25.54
-0.76 -2.89%
Volume: 4.45M
Sept. 26, 2022 4:00p
P/E Ratio
5.03
Dividend Yield
7.83%
Market Cap
$3.07 billion
Rev. per Employee
$190,919
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/zigman2/quotes/201854387/composite
US : U.S.: NYSE
$ 15.21
-0.51 -3.24%
Volume: 10.20M
Sept. 26, 2022 4:00p
P/E Ratio
2.94
Dividend Yield
4.14%
Market Cap
$4.26 billion
Rev. per Employee
$291,761
loading...
/zigman2/quotes/203136811/composite
US : U.S.: NYSE
$ 60.31
-0.96 -1.57%
Volume: 5.11M
Sept. 26, 2022 4:05p
P/E Ratio
21.52
Dividend Yield
1.96%
Market Cap
$71.14 billion
Rev. per Employee
$145,987
loading...
/zigman2/quotes/207799045/composite
US : U.S.: NYSE
$ 148.71
-3.90 -2.56%
Volume: 3.97M
Sept. 26, 2022 4:03p
P/E Ratio
16.89
Dividend Yield
2.90%
Market Cap
$70.24 billion
Rev. per Employee
$239,678
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