NEW YORK (AP) -- Sales at many of nation's biggest retailers soared to better-than-expected levels in April as the continued strength of the U.S. economy encouraged Americans to do lots of shopping last month.
It was the third straight month of surprisingly strong sales, boding well for first-quarter earnings. A number of chains -- including the Limited and Ann Taylor -- have said they will top forecasts for the quarter."Most Americans are working and feeling pretty good, and that is driving traffic into the stores," said Steve Paspal, senior retail analyst at Sovereign Asset Management, a subsidiary of John Hancock Funds.
The raging U.S. economy, combined with low unemployment and inflation levels has made consumers confident about their personal finances and has raised their eagerness to spend.
In addition, the stock market continues its record-setting pace, with the Dow Jones industrial average crossing the 11,000 mark earlier this week.
The big winners in April were specialty clothing chains, while department stores also fared well. Discounters were strong, as shoppers turned to stores like Wal-Mart and Target for their wide selection and affordable prices.
"In the recent past, the discounters have been doing so much better than the department stores, but now I think that the department stores might be closing that gap a little thanks to strong demand for fashionable apparel," Paspal said.
The strength in sales came despite being compared with the stunning performance of April 1998.
Some merchants -- including Dayton Hudson and the Gap -- were hurt by the early Easter holiday this year, which shifted most of the holiday buying into March rather than April.
Despite some hints of weakness, analysts remained confident that retailers would report healthy profit gains for the first quarter. Most will begin to release their earnings in the coming weeks.
"Most retailers have had to make minimum markdowns to push out merchandise," said Walter Loeb, who runs the retail consulting firm Loeb Associates. "I am very optimistic about this quarter and about the spring into summer season."
The Merrill Lynch retail index, the investment firm's barometer of sales performance at department stores and discount chains, was up 2.9 percent in April. It rose 8.4 percent in March and was up 9.5 percent in April 1998.
Wal-Mart, the nation's largest retailer, reported sales from stores open at least a year rose 4.6 percent from a year earlier, while total sales were up 11.5 percent. Sales from stores open at least a year, known as same-store sales, are considered the most accurate measure of a retailer's strength.
Other retailers' reports:
--Sears: Same-store sales down 0.9 percent, total sales down 4.3 percent.
--Kmart: Same-store sales up 5.7 percent, total sales up 7.3 percent.
--J.C. Penney: Same-store department store sales fell 0.2 percent, same-store sales at Eckerd drugstores rose 7.7 percent, total sales rose 6.7 percent.
--Dayton Hudson: Same-store sales down 1.3 percent, total sales up 2.9 percent.
--Federated: Same-store sales rose 1.5 percent, total sales up 12.9 percent. Federated's total sales included revenues from the Internet and catalog seller Fingerhut, which it acquired in March.
--May Department Stores: Same-store sales up 7.7 percent, total sales up 12.3 percent.
--Limited: Same-store sales up 5 percent, total sales were flat.
--Gap: Same-store sales up 1 percent, total sales up 21 percent.
--Ann Taylor: Same-store sales up 10.3 percent, total sales up 17.5 percent.