Department stores post mixed April sales

ATLANTA (Reuters) - Department stores turned in mixed April sales as improving weather and promotional events helped some chains, while weak home-goods demand hurt others as the U.S. housing market still searches for a bottom.

Kohl's Corp (KSS.N: Quote, Profile, Research) turned in better-than-expected results and raised its first-quarter outlook, and J.C. Penney Co Inc (JCP.N: Quote, Profile, Research) sales fell less than forecast. Saks Inc (SKS.N: Quote, Profile, Research) topped estimates with a 23.9 percent rise in sales at stores open at least a year.

Still, some retailers cited difficult conditions as consumers struggled with rising gasoline and food prices. Department store shares were broadly lower in afternoon trading.

"April had a good start but a disappointing finish as the retail environment remains challenging and traffic remains inconsistent," Tony Buccina, president of merchandising at Bon-Ton Stores Inc (BONT.O: Quote, Profile, Research), said in a statement.

Bon-Ton's April same-store sales declined 0.9 percent, worse than a 1.7 percent rise expected by analysts.

Saks said promotions such as a spring clearance sale and a friends and family event lured shoppers to its Saks Fifth Avenue stores.

Elsewhere in the luxury segment, the news was not as good. Privately held Neiman Marcus and Nordstrom Inc (JWN.N: Quote, Profile, Research) posted same-store sales declines of 1.9 percent and 3.8 percent, respectively.

Nordstrom, which noted weakness in women's apparel and in its California operations in recent months, said sales for the first quarter were lower than analysts expected. The Seattle-based upscale retailer has posted same-store sales declines for the past five months.

"Sales trends at (Nordstrom) remained soft in April as competitor promotions took away traffic and deep California exposure weighed on sales," J.P. Morgan analyst Charles Grom said in a research note.