September sales results stronger than expected

NEW YORK (AP) - Retailers are reporting surprisingly solid sales gains for September, boosted by back-to-school shopping in the first half of the month.

The results Thursday give hope for a positive holiday shopping season, although Americans are still dealing with an uncertain economy and high unemployment.

An array of stores including Macy's Inc., Victoria's Secret and Bath and Body Works parent Limited Brands Inc., Abercrombie & Fitch reported better-than-expected results.

A notable exception was Target Corp., which saw sales rise but missed estimates.

"I think retailers are pleasantly pleased by the strength of the back-to-school season," said Ken Perkins, president of research firm RetailMetrics. "It's turning out to be a solid month, which should bode well for the holiday shopping season."

An improving stock market also might have spurred some shoppers to spend, he noted. The S&P 500 rose 9 percent during the month.

Costco's revenue at stores open at least a year rose 5 percent for the month of September. Analysts polled by Thomson Reuters had expected a 4.5 percent increase. The company also reported its fourth-quarter net income rose 16 percent on higher revenue from membership fees and international operations.

Macy's Inc.'s revenue figure rose 4.8 percent, ahead of analysts expectations of a 3.3 percent gain.

"The back-to-school season has been one of our most successful in years," CEO Terry J. Lundgren said in a statement.

Limited Brands' revenue in stores open at least one year rose 12 percent, almost triple the 4.1 percent analysts expected.

Abercrombie & Fitch Co. revenue in stores open at least one year rose 13 percent, far above the 3.6 percent rise analysts expected. That sent its shares up 6 percent in premarket trading.

Target said sales of food and health care products were strong but clothing sales dropped off in the last week of the month. Its revenue in stores open at least a year rose 1.3 percent in September, missing analyst predictions of a 1.9 percent rise. Target expects the figure to rise in the low single digits in October.