September Song

September retail sales were reported higher than analysts had estimated. The sunny report, credited to lower gas prices, brightened prospects for the holiday season.

Higher back-to-school sales often signal increased buying during the holidays, the biggest selling period for most retailers and the only time many make a profit.

Shoppers had more money to spend after a 13 percent decline in the price of gasoline. The decline in gasoline prices put an extra $70 million in the pockets of consumers in September, compared with a year earlier, according to Archstone Consulting in Stamford, Conn.

Also, average temperatures that were 4 degrees lower than last year spurred buying of fleece and sweaters.

Demand for clothes, shoes, computers and books fueled sales in August and September, countering predictions that consumer spending was waning as the housing market cooled and interest rates rose.

About 70 percent of retailers exceeded analysts' estimates, compared with an average 56 percent in recent years, according to Retail Metrics of Swampscott, Mass., which tracks results from 56 retailers.

The Goldman Sachs retail composite index rose 3.4 percent, led by a 9.1 percent increase in department stores and a 6 percent gain in specialty apparel. Discount stores rose 2.2 percent.

Federated Department Stores (Cincinnati) posted a 6.2 percent same-store sales increase. Sales at Target Corp. (Minneapolis) rose 6.7 percent. Gap Inc. (San Francisco) also exceeded estimates, though its sales declined 3 percent. The introduction of skinny black pants in a marketing campaign featuring Audrey Hepburn was credited for the less-than-disappointing performance.

Nordstrom (Seattle) said sales surged 13 percent in September, more than double analysts' estimates. Saks Inc. (Birmingham, Ala.) said sales rose 10 percent in September.

Retailers specializing in the teenage market had the biggest sales gain among different retailer groups, according to Retail Metrics. American Eagle Outfitters (Warrendale, Pa.) and Abercrombie & Fitch (New Albany, Ohio) both raised their profit forecasts after sales surpassed analysts' estimates.

Discounters and wholesale club sales trailed other retailers. Wal-Mart Stores Inc. (Bentonville, Ark.) trailed rivals with a 1.3 percent gain. And Costco (Issiquah, Wash.) said sales increased 4 percent, missing estimates of a 5.1 percent gain.