Retailers get back-to-school boost in August

By Karen Jacobs

ATLANTA (Reuters) - Major retailers, led by discounters Wal-Mart and Target, turned in better-than-expected August sales on Thursday, as consumers went back-to-school shopping despite higher gasoline prices and the nation's housing meltdown.

Tracking firm Retail Metrics said 64 percent of retailers beat expectations for the month, aided by strength in luxury goods and teen apparel. The back-to-school season is the second-biggest retail shopping period behind Christmas.

Retail leader Wal-Mart Stores Inc (WMT.N: Quote, Profile, Research, Stock Buzz) posted a 3.1 percent rise in August sales at stores open at least a year as it cut prices on 16,000 school products to entice shoppers. Analysts were expecting its U.S. sales to rise just 1.6 percent, according to Reuters Estimates.

Target Corp (TGT.N: Quote, Profile, Research, Stock Buzz) said same-store sales rose 6.1 percent and value chain Family Dollar Stores Inc (FDO.N: Quote, Profile, Research, Stock Buzz) raised its quarterly profit forecast.

Others with stronger-than-expected results included apparel retailers AnnTaylor Stores Corp (ANN.N: Quote, Profile, Research, Stock Buzz), Gap Inc (GPS.N: Quote, Profile, Research, Stock Buzz) and J.C. Penney Co Inc (JCP.N: Quote, Profile, Research, Stock Buzz), which on Wednesday reported a lower sales decline than analysts had expected.

MACY'S IMPROVES

Even Macy's Inc (M.N: Quote, Profile, Research, Stock Buzz), which has struggled with disappointing results at former May Department Stores it acquired in 2005, topped expectations with a 2.4 percent sales gain, aided by promotions and improvement in home goods.

The Standard & Poor's Retail Index .RLX edged up 0.22 percent in late afternoon trading.