Retailers are concerned that consumers will finally turn frugal because of the housing market's continuing slump, and that last week's stock market tumble might also cause shoppers to be more conservative.
There's also the lingering specter of higher gasoline prices. Gasoline prices have jumped above $3 a gallon in some parts of California and Hawaii, and may hit that level other parts of the country when the summer driving season approaches.
While February is one of the least important months of a retailer's calendar, merchants do hope to get some idea of which spring fashion trends are resonating with shoppers.
Wal-Mart Sales Rose 0.9% Below Views
Wal-Mart reported a lower-than-expected 0.9% rise in February sales at its U.S. stores open at least a year, and provided a tepid forecast for its March same-store sales.
The world's largest retailer, which has been struggling to reinvigorate its U.S. sales, said that during February it continued to see weakness it its home and apparel business, and the trend is expected to persist through the spring. Like many retailer, Wal-Mart also blamed the unfavorable weather.
Analysts, on average, had been expecting Wal-Mart to report a February same-store sales increase of 1.7%, according to a Reuters survey. Wal-Mart itself had forecast a rise of 1% to 2%.
For March, Wal-Mart forecast sales at its U.S. stores open at least a year to rise between 1% to 2%.
The story was different at rival Target, which said its same-store sales rose 5.7%, beating Wall Street projections and pushing shares higher in premarket trading.
Wall Street analysts had expected Target's same-store sales to be up 5.1%, according to Thomson Financial.
High-End Retailers Show Strength
High-end retailers also saw some strength. Nordstrom said same-store sales rose 9.1% in February, solidly beating Wall Street's expectations. Analysts polled by Thomson Financial predicted the department store would post same-store sales of 5.7% for the month.
Saks posted a same-sales increase of 25% last month, helped by full-priced sales of spring merchandise. The performance blew past analysts' estimates, which had projected a 6.4% increase.
Costco, Federated Fall Short Of Views
But such strong performances were not universal. Costco Wholesale said its sales at stores open at least a year rose 4% in February, slightly lower than overall same-store sales for its fiscal second quarter.
The rise was also lower than the 5.3% rise analysts surveyed by Briefing.com predicted.
Costco said February same-store sales rose 4% in the U.S., while sales at its international stores gained 5%. In addition the company matched analysts expectations for a fiscal second-quarter profit of 66 cents a share, excluding one-time items.
Meanwhile, Federated Department Stores, which operates the Macy's chain, said Thursday its same-store sales rose 1.2% in February, missing both internal and Wall Street expectations as winter weather hurt Valentine's Day sales.
The company had said its same-store sales would rise 2% to 3% during the month. Analysts polled by Thomson Financial were expecting the company to post a jump of 2.8%.
"Sales in February were impacted by a series of snow and ice storms in the eastern half of the U.S., including those during the important selling days immediately preceding Valentine's Day," said Terry J. Lundgren, chairman, president and chief executive.
J.C. Penney had a 0.2% decline in same-store sales in its department store business, below the 0.5% analysts expected.
The company said sales improved at the end of last month, particuarly in areas where weather turned warm. It added that customer response to its newly developed lingerie line called Ambrielle and an exclusive collection from Liz Claiborne has been positive.
Dillard's same-store sales dropped 9% -- far deeper than the minus-1.2% view. The Little Rock, Ark.-based retailers said sales of children's and men's apparel, as well as home décor products were "significantly below trend."
Kohl's, which runs a chain of mid-priced department stores, fared better. The company said its February sales at stores open at least a year rose 4.4%. Analysts, on average, had been expecting Kohl's to post a same-store sales increase of 2.9%, according to a Reuters survey.
Dollar General, a discount retailer, said it had a 4.9% increase in same-store sales. However, excluding seasonal markdowns and 130 stores in the process of closing, sales rose 4.2%. Analysts expected a 4.6% increase.
Apparel retailer Limited also was hurt by poor Valentine's Day sales at its Victoria's Secret and Bath & Body Works chains. The company posted a 3% increase in same-store sales, below the 4% estimate.
Gap had a 4% decline in same-store sales, but analysts had expected a 4.5% drop, according to a Reuters survey.
Bebe Stores had a 2.2% decline in same-store sales, its first monthly decline in 46 consecutive months. Analysts were expected a 2.2% gain.
Pacific Sunwear of California suffered a 5.7% decline in same-store sales, worse than the 3.7% analysts expected.
Pier 1 Imports, which continues to languish, saw same-store sales decline 8.4%, worse than the 4.4% forecast.
Sharper Image suffered a 24% drop, worse than the 16.7% decline projected by Wall Street.