Check out those falling retail earnings.
 
American Eagle posted a decline in quarterly profit as it had to cut prices to offset slumping store traffic and unseasonably
warm weather.
 
Staples also reported a drop in profit, albeit for a one-time charge related to a class-action settlement. The office-supplies retailer also had lower same-store traffic at its U.S. stores.
 
And Talbots earnings fell along with its sales, the latest sign of tough going in women’s apparel.
 
Weakness in clothing has been cutting into profits at a number of retailers and has been one reason many have made tepid forecasts for the holiday season. Discounter Target even said last week that sales were likely to be weak into the middle of next year.
 
Talbots is trying to reverse the trend by changing the pace of promotions and getting in touch with its customers more often. And American Eagle even said that November sales have been slightly positive, with positive traffic trends over the Thanksgiving weekend.
 
More earnings news comes later this week, with reports from Aeropostale, Sears and Dollar Tree, among others.

Also in the basket:
 
Signet likely to miss year forecasts, shares slide
 
Tod’s CEO says expects to meet 2007 targets