DOW JONES NEWSWIRES 
 

Wal-Mart Stores Inc. (WMT) posted February same-store sales more than double analysts' expectations, as a host of other retailers have been exceeding downbeat estimates amid the continued slide in consumer spending.

The company regained its footing after sales growth slowed somewhat the prior two months. Wal-Mart has been benefitting from the slumping sales seen by other retailers as consumers trade down and do more bargain shopping.

The world's largest retailer reported a 5.1% increase in U.S. same-store sales last month, excluding gasoline sales, with the namesake chain posting a 5% increase and Sam's Club seeing 5.9% growth. The company said last month it would no longer provide monthly sales forecasts.

February's results were driven by the grocery, entertainment and health-and-wellness segments.

"We believe falling gas prices significantly boosted household disposable income in February and therefore allowed for both more trips and more spending towards discretionary categories," said Vice-Chairman Eduardo Castro-Wright said.

Wal-Mart's shares were up 2.4% at $49.65 in recent premarket trading.

Separate indexes from Thomson Reuters and Retail Metrics are expected to fall for the fifth-straight month in February. Excluding Wal-Mart, the projected declines of about 1% would be nearly 5%. Thomson Reuters noted this week retailers face a tough year-over-year comparison for the month, as last year's sales were relatively strong.

The troubles reflect the continuing slide in consumer confidence, which has set a new record low each of the past three months, and the steep drops in consumer spending. Even deep discounts that had attracted shoppers earlier this year seem to have lost their effectiveness.

Retailers have been saying recently that they are making headway in reducing their inventories. But there are likely to still be margin questions because indications are that in many cases deep discounting continued in February.

Among other retailers, Children's Place Retail Stores Inc. (PLCE) beat analysts' views, saying same-store were flat from a year earlier, boosted by Canadian results.

High-flier Buckle Inc. (BKE) again remained far above its peers, reporting a 21% jump, widely beating analysts' expectations for a 9% gain. The company has posted double-digit growth in same-store sales for 19 straight months.

Other teen retailers also posted results well above analysts' expectations. Hot Topic Inc. (HOTT) late Wednesday beat analysts' views by a wide margin, posting an 11% increase in same-store sales. Even Wet Seal Inc. (WTSLA) and American Eagle Outfitters Inc. (AEO), which posted drops of 6.6% and 7%, respectively, handily beat estimates.

Apparel retailer Stein Mart Inc. (SMRT) missed analysts' views, however, posting a 12% drop in same-store sales. The company said the worst-performing businesses were ladies' career sportswear and gifts. Gap Inc. (GPS) also fell short with its 12% decline.

-By Kerry E. Grace, Dow Jones Newswires; 201-938-5089; kerry.grace@dowjones.com