April retail sales rebounded slightly, the Associated Press reported, though business was helped by heavy discounting that could hurt earnings.
The A.P. said some of the early sales reports issued yesterday and this morning showed that shoppers, continuing to contend with rising gas prices and worries about their jobs, bought the basics at discounters and wholesale clubs. Wal-Mart Stores Inc. (Bentonville, Ark.) and Costco Wholesale Corp. (Issaquah, Wash.) were among the top April performers, while most mall-based apparel stores selling discretionary items struggled.
According to a preliminary sales tally by Thomson Financial, five retailers beat same-store sales expectations, while five missed estimates.
Wal-Mart, which is rolling out more discounts, reported a 3.2 percent gain in same-store sales, better than the 2.1 percent expected by analysts. Costco reported an 8 percent increase in same-store sales, surpassing the 6.1 percent estimate.
However, among some of the early reporters in the specialty apparel sector, Limited Brands Inc. (Columbus, Ohio) reported a 5 percent drop in same-store sales. And though Pacific Sunwear of California Inc. (Anaheim, Calif.) posted a 4 percent increase in same-store sales, it was below the 5.6 percent estimate.
''Consumers are focusing on value and price points and stretching their dollars,'' Ken Perkins president of RetailMetrics LLC (Swampscott, Mass.), a research company, told the New York Times. ''They are feeling the pinch on multiple fronts.''
He and other analysts told the Times they expect only a modest uptick in sales in May and June as consumers spend tax rebate checks that are starting to arrive. ''There's too much going on in the economy,'' said Perkins.