NEW YORK -- Consumers gave some of the nation's retailers a little relief in April after months of dismal sales, gravitating toward less expensive discounters and wholesale clubs but generally still shying away from stores selling clothes and other non-necessities.
Monthly sales reports issued yesterday were better than expected, but still pointed to a consumer contending with rising gas prices, sagging home values and worries about jobs. Wal-Mart Stores Inc. and Costco Wholesale Corp. were among the top performers last month, while most mall-based apparel stores struggled.
"Consumers are focusing on value and price points and stretching their dollars," said Ken Perkins president of RetailMetrics LLC, a research company in Swampscott, Mass.
He and other analysts expect only a modest uptick in sales in May and June as consumers spend tax rebate checks that are starting to arrive.
Mr. Perkins and others expect shoppers to use the extra cash to pay down debt and catch up on utility and food bills.
Thomson Financial's preliminary tally sows 19 retailers beat estimates, while nine missed. It's based on same-store sales -- stores open at least a year, a key indicator of a retailer's health.
Analysts said some retailers were forced to discount.
Stocks rose after the retailers issued the April sales results that were less gloomy than expected.
The Dow jumped 52.43 to 12,866.78. The Standard & Poor's 500 index rose 5.11 to 1,397.68, and the Nasdaq composite index rose 12.75 to 2,451.24.
Mr. Perkins estimates earnings for the industry will decline by 14.9 percent, compared with a projection in January of 5.3 percent profit growth. But Kohl's Corp. actually raised its earning outlook yesterday.
The UBS-International Council of Shopping Centers retail sales tally for April rose 3.6 percent, surpassing the 2 percent growth estimate. That followed a 0.5 percent decline the previous month.
The retail industry expected a lift in April because of an extra shopping day last month compared to a year ago. That quirk depressed March sales by an estimated 2 percentage points, while inflating April figures, according to Michael P. Niemira, chief economist at the International Council of Shopping Centers. Analysts look at retail sales growth for the two months combined, which overall was a tepid 1.5 percent, in line with the average sales growth since the beginning of the industry's fiscal year.
A deteriorating economy, soaring food and gas prices, limited credit and slumping home prices continue to unnerve shoppers. The Conference Board said last month that Americans were gloomier about the economy than just before the U.S. invasion of Iraq in March 2003.
In a statement yesterday, Eduardo Castro-Wright, Wal-Mart Stores U.S. president and CEO, said the "economy continues to get tougher" and that customers increasingly were unable to stretch their dollars to the next pay day.
"As money gets tighter for them toward the end of the month, sales drop more than we have seen in the past," he said.
Wal-Mart, which is rolling out more discounts, reported a 3.2 percent gain in same-store sales. Analysts polled by Thomson Financial expected a 2.1 percent gain. Including fuel, same-store sales rose 3.8 percent.
The world's largest retailer said business was helped by strong sales in groceries, health items and entertainment products such as flat-panel TVs, video games and game consoles.
Rival Target Corp. posted a 3.1 percent gain in same-store sales, below the 4.5 percent estimate, as consumers shopped for necessities.
Costco reported an 8 percent increase in same-store sales, above the 6.1 percent estimate.
TJX Cos. Inc., which operates discount apparel and home stores including T.J. Maxx and Marshalls, said same-store sales rose 8 percent, better than the 6.5 percent estimate.
Among department stores, Penney reported a 1.7 percent decline in same-store sales, though that was better than the 4.6 percent analysts expected.
Nordstrom Inc. posted a 3.8 percent drop in same-store sales, worse than the 1.8 percent projection.
Limited Brands reported a 5 percent drop in same-store sales, below the 2.3 percent forecast.
Gap Inc. suffered a 6 percent drop in same-store sales, worse than the 1.9 percent analysts anticipated.
Abercombie & Fitch Co. reported a 6 percent gain in same-store sales, surpassing the 2.3 percent estimate. Aeropostale Inc., whose clothing is about 30 percent cheaper than competitors such as Abercrombie & Fitch, reported a 25 percent increase in same-store sales for April. The figure surpassed the 7.1 percent estimate.
Pacific Sunwear of California Inc. posted a 4 percent increase in same-store sales, below the 5.6 percent estimate.