Retailers report slow April, citing economy and weather

NEW YORK -- The arrival of Easter and the winding down of the war in Iraq couldn't lift retailers out of their slump in April -- consumers still nervous about jobs curbed their spending for yet another month.

As the nation's largest retailers reported their monthly sales Thursday, department stores again languished, hurt in part by cool weather that stalled sales of spring clothing. Discounters fared better, but even their results were mixed.

Wal-Mart, the world's largest retailer, late Wednesday reported slightly lower-than-expected sales at stores open at least a year, known as same-store sales.

Among the companies reporting Thursday, Kohl's Corp. also had same-store sales that were below analysts' expectations. The retailer cut its first-quarter earnings forecast.

One big bright spot was Gap Inc., which continued its comeback, reporting a same-store sales surge almost double what analysts had expected. Same-store sales -- sales at stores open at least a year -- are considered the best measure of a retailer's strength. The apparel chain also boosted its earnings estimate for the first quarter.

"The consumer is way off her game," said Todd Slater, an analyst at Lazard Freres. "People are worried about a lot of things."

Michael P. Niemira, vice president of Bank of Tokyo-Mitsubishi Ltd., said that while the sales trend is still relatively weak, there "may be some positive surprises ahead."

Bank of Tokyo Mitsubishi's same-store sales tally of 76 stores' results was up 3.2 percent in April, slightly lower than what was expected.

Analysts were hoping for a better performance, partly because Easter fell on April 20, three weeks later than a year ago. The shift in the calendar boosted sales for the month while depressing March results. Same-store sales were down 0.2 percent in March, according to the Bank of Tokyo-Mitsubishi index.

Niemira and other analysts believe that studying the average of both March and April sales -- a sluggish 1.5 percent gain -- offers a better reading of the spring season.

Wal-Mart said same-store sales for April were up 4.6 percent. Analysts had projected a 5 percent gain, and Wal-Mart's own forecast was for 5 percent to 7 percent. Total sales were up 12.2 percent.