Specialty apparel retailers edge down in quarter

The Dow Jones Apparel Retailers index dipped nearly 1 percent during the three months ending Sept. 29. Meanwhile, the Dow Jones Industrial Average fell roughly 9 percent.

Apparel retailers are facing a cutback in consumer discretionary spending amid rising food and gas prices, a weakening economy and a prolonged housing slump. In response, many have slashed inventory to avoid markdowns and focused on deals and promotions.

Gap Inc. shares gained about 5 percent in the quarter, boosted by a rise in August as the company lifted its full-year earnings guidance and named Tom Wyatt the new head of its struggling Old Navy chain.

Abercrombie & Fitch Co., meanwhile, was one of the biggest losers, as shares declined 43 percent during the quarter. The stock has taken a beating as the teen apparel chain has stuck to its higher-end price points, while lower-priced competitors such as American Eagle Outfitters Inc. promote more of a value message.

American Eagle Outfitters shares gained 5 percent during the quarter.

AnnTaylor Stores Corp. was another decliner. The women's sector has been among the hardest hit by the slowdown. Shares lost 15 percent during the quarter.