WRAPUP 2-U.S. retail sales warm up but don't sizzle

(Adds details, quotes, stock moves)

By Martinne Geller

NEW YORK, June 7 (Reuters) - U.S. retail chains on Thursday reported moderate May sales increases as warmer weather fueled demand for seasonal items, like gardening and other outdoor goods, helping retailers rebound from a dismal April.

But several specialty apparel chains posted disappointing results, due in part to weak sales of women's clothes and increased competition from department stores trying to lure fashionable shoppers.

Among retailers reporting May sales at stores open at least a year, 57 percent exceeded Wall Street expectations while 41 percent fell short, according to research firm Retail Metrics. The performance was better than the firm's long-term average.

"Strong upsides from the department stores, particularly the high end, specialty apparel retailers and discounters fueled a solid snap back in May comparable sales," wrote Retail Metrics president Ken Perkins.

Retail Metrics' same-store sales index averaged a gain of 3 percent in May, surpassing Perkins's forecast of 2.5 percent.

Wal-Mart Stores Inc. (WMT.N: Quote, Profile, Research, Stock Buzz), the world's largest retailer, said sales at stores open at least a year rose 1.1 percent in May, excluding fuel sales. Including fuel, sales rose 1.3 percent as weakness in apparel and home goods was offset by strength in lawn and garden goods, live plants and groceries.