Holiday discounts cut into December profits

NEW YORK — Many retailers reported solid sales gains for December, but the deep discounts and promotions that shoppers have come to expect cut into profits. A range of retailers, including Target and The Children’s Place, reduced their, reducing their earnings outlooks. Overall, retail sales rose 3.4% at the 22 retailers tracked by the Thomson Reuters same-store sales index, compared with the 3.3% analyst forecast. Some retailers offered steep discounts during the crucial holiday season. Alison Paul, retail sector leader at Deloitte in Chicago, said the chains that spread their discounts out over the season did well, while those