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Retailers delivered some of their best same-store sales in almost a year in August, with apparel retailers and discounters benefiting from some early back-to-school buying, while department stores continued struggling for the right formula to bring customers back.

The showing is prompting some analysts to say that July's big drop was the bottom of a downturn that began for the industry last fall and that has stubbornly stuck while other areas of the economy are improving.

Still, a quick recovery is not expected since fully half of retailers missed projections, leaving the Christmas buying season still a bit unknown.

Sales at stores open more than a year, a key measure of retailers' health, slipped 2.9% last month, when a 3.8% drop was expected. The results are based on analysts' estimates for 30 retailers and compiled by Thomson Reuters.

The showing, the widest estimate beat since last year, is somewhat skewed by easier comparisons retailers faced as the bottom really started falling out for the industry in August 2008 and sales that month were relatively flat.

But many of the beats were big, including numbers turned in by Target Corp. (TGT), Costco Wholesale Corp. (COST) and Gap Inc. (GPS).

Industrywide, same-store sales fell for a 12th straight month - highlighting the woes retailers have experienced as consumer spending continues to decline. But with leaner inventories, companies are hoping to avoid the markdowns of last year's holiday season as sales then were even weaker than expected.

August results were also hurt by the late Labor Day holiday, meaning some schools started sessions later than last year. Another likely impact was the strong rebound in August U.S. auto sales on the "Cash for Clunkers" program. It was seen as steering some consumers away from retailers to car showrooms.

Still, the sales decline was smaller than July's 5.1%, and comparisons will continue to get easier in the coming months. Weak prior-year results in part helped cushion the August decline - year-earlier same-store sales rose a scant 0.2%, according to Thomson Reuters. That was the last increase for the industry.

Target reported a smaller than expected 2.9% same-store sales decline, with Chairman and Chief Executive Gregg Steinhafel saying traffic was "essentially" flat, "a meaningful improvement from second-quarter trends. We're pleased with these results, which we believe reflect the resilience of both our guests and our strategy in a challenging environment."

Off-price apparel sellers TJX Cos.' (TJX) and Ross Stores Inc. (ROST) have been posting some of the best results of late, and analysts in recent days were sharply raising their August estimates, said Retail Metrics.

TJX posted a same-store sales increase of 5%, while Ross Stores reported a 6% gain, both results topping estimates.

Another bright spot was Gap. It posted a much smaller than expected 3% decline on a surprise 4% increase at the long-struggling Old Navy chain.

Aside from Abercrombie & Fitch Co. (ANF), many teen retailers did better than expected. Abercrombie again led the way down, posting a bigger-than-projected 29% same-store-sales decline for August. The company has seen big declines for months as price-conscious shoppers instead go to cheaper rivals like Aeropostale Inc. (ARO). Aeropostale had record August results and a 9% increase. As such, it raised its earnings forecast for the quarter by 2 cents a share.

Department stores continued their woes. Macy's Inc. (M) posted an 8.1% same-store sales drop, while J.C. Penney Co. (JCP) had a 7.9% decline. But Kohl's Corp. (KSS) posted a surprise 0.2% increase, which was aided by strength in the accessories and women's departments.

Wal-Mart Stores Inc. (WMT) in May stopped reporting monthly sales data.

Analysts had a generally positive response to the reports, upgrading a number of retailers' shares and increasing their estimates.

In raising Costco to overweight from neutral, J.P. Morgan Securities said same-store-sales for hardlines goods, like small appliances and sporting goods, are improving, and the northern part of California, one of the hardest hit states by the recession, emerged as one of the leading regions during August. Costco is up 8.2% to $54.81.

Zumiez Inc. (ZUMZ) had one of the biggest beats, with August same-store-sales dropping 12%, when a 19% decline was expected. The showing spurred MKM Partners to raise shares to buy, calling August "a turning point" for the specialty retailer of sports-related apparel, footwear and accessories for teens and young adults. Zumiez is up 17% to $14.32. The stock is the best performer on the Standard & Poor's Retail Index, which is ahead 1.2% to 355.22.

Other big gainers include Gap Inc. (GPS), ahead 6.6% to $21; and Nordstrom Inc. (JWN), rising 6% to $28.82.

Abercrombie & Fitch is off 4.4% to $30.67. The once seemingly unstoppable Buckle Inc. (BKE) was up 3 cents at is flat at $26.78 after same-store-sales rose 3.6% when a 4.8% rise was expected.

-By Karen Talley, Dow Jones Newswires; 212-416-2196; karen.talley@dowjones.com

(Kevin Kingsbury contributed to this report.)