Retailers across the country, worried by projections of a lackluster season from analysts and trade groups, had responded with heavy markdowns, starting the day after Thanksgiving.

Those factors led to heavy markdowns in Mr. Feiwus's first year, and, to protect themselves, merchants placed conservative orders for the spring 1992 catalogues.

The uneven sales pace of the last few months has unnerved retailers and put more pressure on them to increase sales in December or risk heavy markdowns in January.

Donald Fisher, the company's chairman, said heavy markdowns are also being taken in the current quarter, but he said that has been typical of Gap's strategy in previous years.

In addition, executives warned that efforts to clear leftover spring merchandise with heavy markdowns in May could erode profit margins.

When the holiday shopping season begins at Thanksgiving, people can expect to see still more of the heavy markdowns they have seen the last few holiday seasons.

Flat 4th Quarter Seen Retailers' earnings reports are expected to reflect heavy markdowns, which were used to counter sluggish sales for much of the final quarter.

Mr. Rousso said Russ Togs "had a rough fourth quarter," but he added, "I think that will come right back after heavy markdowns to clean out our inventories."

In 1989, Macy had a disappointing holiday period, resulting in heavy markdowns, which hurt operating profits.

Inventories were way out of line, portending heavy markdowns and a hit to the bottom line.