(Adds final readings from Thomson Reuters, Retail Metrics, updates stock prices.)

 
   DOW JONES NEWSWIRES

Wal-Mart Stores Inc. (WMT) posted a February same-store sales increase that was more than double analysts' expectations, as a host of other retailers exceeded 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 4.3% at $50.58 in recent trading.

Same-store sales rose slightly industrywide for the first time in five months on Wal-Mart's outperformance. Excluding the company, the decline was in excess of 4%, according to Thomson Reuters and Retail Metrics. Thomson Reuters added 57% of companies beat the average expectation of analysts it surveyed.

But retail is far from out of the woods as its ongoing trouble reflects the continuing slide in consumer confidence, which has set a new record low each of the past three months, and the steep drops in spending. Even deep discounts that had attracted shoppers earlier this year were having limited impact before February.

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.

Troubles remained for Target Corp. (TGT), which had been consistently underperforming, but the company beat analysts' projections slightly with its 4.1% decline in same-store sales.

Department-store chains have been weak performers for some time, and the trend continued in February. Macy's Inc. (M) and Saks Inc. (SKS) posted weaker-than-expected results with drops of 8.5% and 26%, respectively.

Among other apparel retailers, Children's Place Retail Stores Inc. (PLCE) beat analysts' views, saying same-store were flat from a year earlier, boosted by Canadian results. Its stock rose 12% to $19.95.

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. Shares climbed 7.4% to $23.63.

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.'s (GPS) own 12% decline, though, was smaller than expectations.

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