Retailers report smaller sales declines

The nation’s retailers, despite smaller-than-expected sales declines in April, continue to face daunting economic conditions this spring that are expected to hamper consumer spending for months.

Sales figures reported by major chain stores Thursday appeared stronger than in recent months, with fewer double-digit declines and a handful of surprisingly strong performances, including Ross Stores Inc. and T.J. Maxx.

Analysts cautioned against interpreting the data as a sign that spending is improving and that the economy is poised for a quick recovery.

A later Easter date this year that pushed the holiday from March into April helped boost sales and masked the underlying problems in the retail industry, said Michael Niemira, chief economist of the International Council of Shopping Centers.

Based on a tally of 32 major chain stores, the council found same-store sales rose by 0.7 percent compared with the year-earlier period. But when factoring in the effect of the Easter shift, the industry’s performance declined 2.3 percent, Niemira said.

Looking at March and April together, he said the two-month period registered a 0.6 percent decline.

“March overstated the weakness, and April overstates the strength,” he said.

Total retail sales were helped in April by another healthy performance by discount giant Wal-Mart Stores Inc., which posted a 5.0 percent sales gain, excluding fuel sales.

“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.

There were several surprises, particularly in the apparel group, which benefited from the late Easter date, warmer weather in many regions and the shift in seasons that saw shoppers stocking up on summer clothing.

Discounters Ross and T.J. Maxx registered surprising gains of 6.0 percent and 3.0 percent, respectively, and both retailers consequently raised their earnings guidance. San Francisco-based Gap Inc., parent to the Banana Republic, Gap and Old Navy brands, reported a 4.0 percent sales decline, which was better than the 7.8 percent drop analysts had expected.

Teen retailer Aeropostale Inc. surprised Wall Street with a whopping 20 percent year-over-year sales increase; analysts had expected sales to rise 8.5 percent. Results are based on sales at stores open at least a year, called same-store sales and considered a key indicator of retail health.