Oct. 9 (Bloomberg) -- Abercrombie & Fitch Co. and TJX Cos. said profit would be lower than they forecast, while clothing retailer Gap Inc. said September sales dropped 11 percent, as consumer spending slowed toward the end of last month.

The results, combined with sales decreases posted yesterday by J.C. Penney Co., Nordstrom Inc. and Kohl's Corp., indicate the biggest financial crisis since the Great Depression and higher food and gasoline costs have caused consumers to pull back. That may threaten holiday sales, which may account for as much as 35 percent of a retailer's annual revenue.

``The economic conditions are going to affect a broader array of people than last year,'' Laura Gurski, a partner specializing in retail at consulting firm A.T. Kearney Inc., said yesterday in an interview. ``The horizon doesn't look that great.''

September sales at stores open at least a year increased 1 percent, based on results of 36 chains, the International Council of Shopping Centers said today. The figure was the worst since March's 0.5 percent decline. The group had forecast September sales to be unchanged or rise as much as 1 percent after an earlier projected gain of 2 percent.

Abercrombie, based in New Albany, Ohio, fell $4.82, or 15 percent, to $27.69 as of 4:20 p.m. in New York Stock Exchange composite trading, the biggest drop since September 2001, as the broader market tumbled. Framingham, Massachusetts-based TJX declined 8.9 percent to $25.15, while Gap dropped 9.5 percent to $13.89.

Sales at older stores increased 1.2 percent last month, Swampscott, Massachusetts-based Retail Metrics LLC said today. Excluding Wal-Mart Stores Inc., the world's largest retailer, same-store sales fell 0.1 percent.

Jobs Market

``Consumers are bracing for recession,'' Ken Perkins, president of Retail Metrics, wrote today in a report. ``Credit will continue to be very difficult to come by through the holiday-shopping season, and the jobs market is likely to further deteriorate.''

The collapse of the U.S. housing market has upended the economy, frozen credit markets and saddled financial firms with almost $600 billion in mortgage-related writedowns and credit losses. The National Retail Federation has forecast the worst holiday season since 2002.

Comparable sales dropped 14 percent in September, Abercrombie said. Earnings for the second half of the year ending in early 2009 may fall ``appreciably below'' its forecast, which was $3.40 to $3.45 a share in August, said the teen retailer, which offers $100 women's jeans at its namesake chain.

Third-quarter profit may decline to 74 cents to 76 cents a share, Abercrombie said. Analysts estimated $1.14, the average of 24 projections in a Bloomberg survey.

TJX Sales

September same-store sales fell 1 percent at TJX, hurt by foreign-currency changes, the retailer said today in a statement.

Third-quarter profit may rise to as much as 58 cents a share from a previous forecast of at most 62 cents, said TJX, the owner of T.J. Maxx and Marshalls.

Full-year results, excluding some items, may now reach $2.31 a share from a previous forecast of a maximum $2.35. TJX sells designer-label clothes and home furnishings at 20 percent to 60 percent off department-store prices.

Gap, the largest U.S. apparel retailer, said comparable sales plunged 24 percent at its Old Navy chain. Analysts surveyed by Retail Metrics estimated a 11 percent decline there and an 8.2 percent drop overall.

``Gap continues to fritter away brand equity with a mixed and confusing merchandising message,'' Carol Levenson, an analyst at Gimme Credit LLC, said today in report.

Women's clothing retailer Chico's FAS Inc. said September comparable-store sales plunged almost 16 percent. The Fort Myers, Florida-based company said it would ``essentially withdraw'' its forecast for the second half of the year because of the economic climate.

Ross Stores Inc., the owner of the Ross Dress for Less discount chain, said third-quarter earnings would be at the ``lower end'' of its forecast for 42 cents to 44 cents a share. Same-store sales dropped 2 percent.

To contact the reporter on this story: Heather Burke in New York at hburke2@bloomberg.net.

Last Updated: October 9, 2008 16:30 EDT