April Sours for Retailers

Updated from 10:12 a.m. EDT

April shaped up to be an even tougher month than expected for the nation's major retail chains.

Of the 51 retailers tracked by Thomson Financial, 85% reported same-store sales for the month that missed analysts' forecasts.

The results for the month were largely expected to be weak, as a shift in the timing of the Easter holiday from April to March this year hurt comparisons. But most analysts were taking that shift into account and had already set a low bar for the companies.

The dismal showing added fuel to concerns that consumer spending, the biggest part of the nation's economy, may be slowing down in the wake of ever-rising gas prices and the ongoing housing slowdown.

While noting the poor showing, Ken Perkins, president of the research firm Retail Metrics, said it was essential to consider March and April sales figures together, given the weight of the Easter holiday shift. March sales were largely stronger than expected.

"It was really bad in April," says Perkins. "But that doesn't necessarily mean the retail environment is heading for the cliff or that the consumer is about to implode."

The apparel sector saw some of the biggest losses, with an average 8% decrease in same-store sales, or sales at stores open at least a year. Analysts were expecting a 3.3% increase.

To find out how RealMoney contributors are interpreting the latest round of retail sales data, please click here.