NEW YORK (AP) — Shoppers' focus on staples such as socks and underwear is driving murky holiday outlooks at Wal-Mart and Kohl's, even as both posted higher third-quarter earnings Thursday.

Both signaled they plan aggressive discounting to hang on to customers and drive sales this holiday season.

Wal-Mart Stores' price-cutting campaign is bringing more shoppers in the door. But they're spending less when they get there because the goods are priced lower — because of deflation, especially for meat and dairy items, and discounts designed to bring people into its stores.

The price decreases at Walmart helped fuel a second consecutive quarterly decline in sales at U.S. stores open at least a year, a key measurement of a retailer's health because it excludes the effects of expansion. The company expects sales could continue to decline through the fourth quarter.