Gray Christmas?

Two of the country's largest specialty retail chains announced disappointment with November sales results, raising fears of a weak Christmas 2000 selling season.

The Gap (San Francisco) having battled uphill all year, reported same-store sales were down 1 percent for the month. Though the company said results were better than they had forecast, several analysts said they had expected a positive outcome.

The Limited (Columbus, Ohio) reported only a 3 percent increase in same-store sales, mainly due to weak results at Intimate Brands (of which The Limited owns 84 percent). The parent company of Victoria's Secret, Bath and Body Works and White Barn Candle Company, reported a 3 percent sales decrease. It was reportedly the first time the company had missed forecasts since 1995.

Investors fear a decrease in consumer demand could incite a rash of profit-damaging price cuts, making for a weak holiday season.