DOW JONES NEWSWIRES 
 

Wal-Mart Stores Inc. (WMT) reported March same-store sales below analysts' expectations, and numerous other retailers missed downbeat estimates as consumer spending continues to drop.

Following a strong February and a March that was impacted by Easter moving back to April this year, Wal-Mart expects earnings and same-store sales for its fiscal first quarter coming in at the high end of its forecast.

Easter selling is expected to be muted this year because of the economic downturn, and analysts expect the later Easter to be negative for March comparisons since people weren't doing their Easter shopping in March. However, they said some retailers could benefit from the extra shopping day in March. Last Easter, which fell March 23, was the earliest in 95 years.

The world's largest retailer posted a 1.4% increase in U.S. same-store sales last month, excluding gasoline sales, with the namesake chain posting a 0.6% increase and Sam's Club seeing 6.2% growth. March's results were driven by the health and wellness, home and grocery segments.

Wal-Mart Vice Chairman Eduardo Castro-Wright said the company expects Easter to drive April sales performance.

Wal-Mart's shares were down 4.6% at $50.19 in recent premarket trading. The stock was up 11% in the last month as of Wednesday's close.

The growth at Sam's Club was also seen at rival Costco Wholesale Corp. (COST), which reported a 4% same-store-sales increase excluding gasoline and currency fluctuations.

Separate indexes from Thomson Reuters and Retail Metrics are expected to fall again in March despite last year's weak results after a brief respite in February, when Wal-Mart's results drove them above break-even. Excluding Wal-Mart, the projected slight declines for last month could reach 5%.

The troubles reflect the weakened state of consumer confidence, which edged up slightly in March after hitting an all-time low in February. Lynn Franco, who runs the Conference Board's Consumer Research Center, said consumers remain "extremely pessimistic" about the short-term future and don't foresee a turnaround in economic conditions over the next six months.

The expected drop is especially disheartening after a slight increase in February broke a four-month string of declines. But more retailers have beaten analysts' downbeat projections over the last three months than those that have fallen short, so another upside surprise may be possible.

Among other retailers, Children's Place Retail Stores Inc. (PLCE) posted a surprise 2% drop in March same-store sales. Others who missed analysts' views also included teen retailers Zumiez Inc. (ZUMZ), which posted a larger-than-expected 18% drop, and Wet Seal Inc. (WTSLA), which reported an 11% fall. Department store Stage Stores Inc. (SSI) had a 15% decrease and teen retailer American Eagle Outfitters Inc. (AEO) disappointed with a 16% drop.

Another teen retailer, Abercrombie & Fitch Co. (ANF), missed estimates by 10 percentage points, posting a 34% tumble; these were the lowest estimates projected for any company. The company has been steadfast about refusing to cut prices, saying such a move would devalue its brand.

High-flyer Buckle Inc. (BKE) again soared above its peers, reporting a 15% jump, beating analysts' expectations of a 13% gain. The company has posted double-digit growth in same-store sales for 20 straight months.

Teen retailer Hot Topic Inc. (HOTT) beat analysts' views for the fourth straight month, with a same-store sales increase of 7.1%. Limited Brands Inc. (LTD) also beat expectations with a 9% decrease. Gap Inc. (GPS) also came in above views with an 8% drop.

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