Specialty Retailers Wedbush Is Following

In a report published Tuesday, Wedbush analyst Morry Brown detailed mall checks at many specialty retailers.

Express: Reduced Level Of Promotions

Express, Inc. EXPR held a reduced level of promotional activity at stores and online and chose not to lap 40 percent off entire store offer during Mother's Day weekend in early May. Customers appeared to be shopping based on fashion rather than promotion and price even though the men's business appeared slightly more promotional than women's.

Urban Outfitters: Promotional Activity In Line With Q1 Conference Call Commentary

Urban Outfitters, Inc. URBN ran a 20 percent discount promotion on its entire store for three days over Mother's Day weekend, up from 15 percent off one day only last year. The heightened promotional activity was consistent with the company's comments of an April slowdown and generated "strong" traffic across all regions, according to the analyst's checks.

Francesca's Holdings: Lower Promotional Activity

Brown noticed a decline in promotional activity at Francesca's Holdings Corp FRAN as the company ran a 30 percent off full price shoes, swim cover ups and straw and each handbags. This compares to last year's buy-one-get-one 50 percent off the entire store. The analyst also observed better sell through of lighter weight fabrications versus statement jewelry.

Handbags: Coach's Coupon Drove Traffic, Kate Spade Still A Winner

Mother's Day proved to be a key event for handbag sales as shoppers reacted positively to Coach Inc COH's preferred custom coupon that drove traffic to full priced stores in the first week of May.

Kate Spade & Co KATE remained a traffic winner with an "appealing" gift selection and a new promotion that ran over Mother's Day. The company maintained its momentum with its "fresh" line of flamingo-themed merchandise.

Finally, Michael Kors Holdings Ltd KORS sell through was "impressive" at the wholesale level. However, customers showed a tendency to turn to the department stores for deals on the brand before heading to full priced stores.

Teen Retailers: Solid Traffic At American Eagle, Spotty At Abercrombie

American Eagle Outfitters AEO saw its momentum continue in the first of May despite lower discounts year-over-year and the new Beach Whites collection off to a strong start.

On the other hand, Abercrombie & Fitch Co. ANF saw its traffic levels remaining "spotty" at both Abercrombie & Fitch and Hollister despite higher levels of promotions compared to last year. However, shoppers demonstrated a "strong response" to Hollister's Star Spangled Banner collection that sold well at full price.