A&F (NYSE:ANF), American Eagle (NYSE:AEO), Ann Taylor (NYSE:ANN), Coldwater Creek (Nasdaq:CWTR) Ending Christmas with Discounts

A&F (NYSE:ANF), American Eagle (NYSE:AEO), Ann Taylor (NYSE:ANN) and Coldwater Creek (Nasdaq:CWTR) are all ending the Christmas sales season with numerous promotions.

It appears the overall season was a success from a sales point of view, but margins and earnings should be pressed hard when the numbers eventually come out.

FBR said, "According to the International Council of Shopping Centers, sales last week increased 1.7% over the prior week. ICSC also raised its holiday forecast by half a point on December 17 to 3.5%–4% from 3%–3.5%. According to comScore, holiday season retail e-commerce spending for the first 47 days of the November–December 2010 holiday season reached $27.46 billion, marking a 12% increase over last year. The most recent week, the week ending December 17, reached $5.15 billion in spending, an increase of 14% versus last year."

"A&F and Hollister increased promotions this weekend with 30% off the entire store, an increase over last year’s promotion. The merchandise selection and pricing are attracting customers inclined to shop at American Eagle Outfitters and Aéropostale. We continue to believe promotional tactics will be more effective in driving comp in the month of December. Management plans to delay setting its spring transitional set until January week 1 versus December week 5 last year to focus on after Christmas clearance."

"American Eagle Outfitters offered the same buy one, get one as last week and 20% off the entire store. The company expanded the prior week’s bogo to 50% off all tops promotion. The prior week’s bogo promotion included just sweaters and hoodies. Item-specific discounting appeared more prevalent, as well."

Ann Taylor driving last-minute purchases. Ann Taylor increased its offering to 40% off full-price purchases, an increase over the prior week’s 30% off full-price purchases. LOFT has been offering blanket discounts of 30%–40% off for most of the holiday season. Last week, LOFT offered 40% off entire purchases. ANN’s customer, at both divisions, shops mostly for herself and is mostly driven by holiday party occasions. Thus, we believe the shopping patterns peak earlier in the month for ANN’s divisions."

"Coldwater Creek offered 25% off in-store purchases and a free watch. It appears that the company is attempting to clear out excess inventory by offering 40% off online purchases. The company offered 30% off purchases last year and a free gift. The promotions in stores are a little misleading, given that the company uses the direct business to clear its excesses."

American Eagle was trading at $14.85, up $0.09, or 0.58 percent, as of 11:47 AM EST. Abercrombie & Fitch was trading at $57.48, up $0.49, or 0.86 percent. Ann Taylor dropped to $27.42, down $0.61m, or 2.18 percent. Coldwater Creek fell to $2.90, losing $0.03, or 1.02 percent.