Retailers Report Sales Declines in February

"It's still ugly, but it's dressed up a little bit," said Ken Perkins, president of research company RetailMetrics LLC, referring to the February sales figures. "The macro headwinds outweigh fashion, newness and better weather and will continue to make it very difficult for retailers through the first half of the year."

February's figures are expected to mark the industry's fifth straight month of overall same-store sales declines.

Wal-Mart Stores Inc., though, posted much stronger results than analysts expected, saying its February same-store sales rose 5.1%. The results exclude fuel sales. Analysts surveyed by Thomson Reuters, on average, expected a rise of 2.4%.

Groceries and health products remained the best sellers as shoppers turned to the world's largest retailer for necessities. The company also did well with entertainment products and housewares as more families entertain and cook at home.

Rival Target's (TGT Quote) same-store sales declined 4.1%, less than the 4.8% drop that Wall Street expected.

TJX Cos., which sells discounted name-brand merchandise, said sales were flat from a year ago -- better than the 1.8% drop expected.

"We are taking a very conservative approach to managing the business, buying very sharply and maintaining lean, fast-turning inventories," Chief Executive and President Carol Meyrowitz said in a statement.

Among department stores, Macy's Inc.'s same-store sales fell 8.5%, deeper than the 7.3% decline that Wall Street expected. J.C. Penney Co. Inc.'s 8.8% decline was less than the 12.9% drop expected.

Luxury stores have been the industry's worst performers, scrambling to cut inventories to react to plummeting customer demand for $5,000 handbags and $3,000 dresses. Saks Inc., which operates Saks Fifth Avenue, suffered a 26% declines, deeper than the 20.5% drop expected by Wall Street. And Neiman Marcus Group Inc. said that same-store sales in the segment that includes Neiman Marcus Stores and Bergdorf Goodman fell 24.2%.