Retailers report smaller sales declines in April

NEW YORK — Consumers enticed by warmer weather and glimmers of hope for the economy bought a few more items in April. Wal-Mart Stores led the broader gains, posting far better results than expected and setting an upbeat tone for the month.

Business in many areas remains weak, however, and analysts expect a drawn-out recovery as layoffs keep increasing and other economic woes persist.

Among merchants that reported sales results Thursday, a number of mall-based clothing stores including Stage Stores Inc. and Wet Seal Inc. posted smaller declines than analysts had expected. The Children's Place Retail Stores Inc. and The Buckle Inc. even reported gains that were better than forecast.

But warehouse store operator Costco Wholesale Corp. reported a deeper-than-expected same-store sales drop, hurt by the closing of its stores on Easter.

Same-store sales, or sales at stores open at least a year, are a key indicator of retailer performance since they measure growth at existing stores rather than newly opened ones.

"It looks as though the rate of decline is diminishing," said Ken Perkins, president of research firm RetailMetrics LLC. "There were a number of factors putting more money into people's pockets, but the macro headwinds are still significant."

Retailers' business was helped by warmer weather, tax refunds, and a shift in the Easter holiday from mid-March last year to April this year. That shift hurt business in March but helped boost April results. Signs of an improving an economy — a stock market rally and better news about the housing market — have helped improve shoppers' confidence.

Sentiment levels are still hovering near historic lows, however, as shoppers worry about job security, available credit and their shrunken retirement funds.

Wal-Mart continues to take market share away from rivals as shoppers looking for deals are buying a wide range of products at the discounter. Grocery, health and wellness products, entertainment and home furnishings were among its best-selling items.

The chain reported a 5 percent same-store sales gain, much better than the 2.9 percent increase that analysts surveyed by Thomson Reuters had expected. That excludes fuel sales. Same-store sales rose 5.9 percent at its namesake U.S. stores and 0.3 percent at Sam's Club.

"We gained new customers, improved our market share position, and found that when customers had more money to spend, they spent it more often at Wal-Mart," Vice Chairman Eduardo Castro-Wright said in a statement.