Retail spending, weather mix March sales reports

NEW YORK -- The nation's retailers struggled with mixed sales in March as cold weather kept many shoppers indoors, but analysts said consumers' willingness to spend nonetheless appeared robust.

As stores released their sales figures Thursday, heavyweights Wal-Mart Stores Inc. and Limited Brands posted results that fell short of Wall Street forecasts. Moderately priced J.C. Penney Co. Inc. said its sales soundly missed estimates, while discount department store operator Kohl's Corp. also posted an unexpected drop in business. May Department Stores Co. widely missed forecasts.

Even some upscale retailers like Neiman Marcus Group Inc., which have benefited in recent months from the improving economy, were hurt by the weather.

But youth-oriented apparel sellers including Abercrombie & Fitch Co. and Bebe Stores Inc. were big winners, posting sharply better than expected results. Discounter Target Corp. also easily beat forecasts.

Analysts said March's results showed consumers' willingness to spend remains intact despite oil prices in the $50 range and the threat of rising interest rates, though last month showed signs of a drop-off after strong sales recorded in January and February.

March sales "shows consumers are still resilient, but cautiously spending," said retail analyst Rachel Schechter at Thomson Financial in New York. "The theme that I've noticed is that teen retailers are paving the way for some great results."