(Includes additional results, stock prices.)

 
   DOW JONES NEWSWIRES 
 

Retailers reported another month of weak same-store sales in August, but heavyweights Target Corp. (TGT), Kohl's Corp. (KSS) and Gap Inc. (GPS) were among the bright spots with results topping analysts' expectations.

Industrywide, same-store sales fell for a 12th straight month - highlighting the woes retailers have been under 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, 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.

Discounters had been holding their own during the recession, but even they have been showing strains of late. Costco Wholesale Corp. (COST) reported flat same-store sales in the U.S. excluding gasoline, while smaller warehouse-club rival BJ's Wholesale Club Inc. (BJ) reported a 2.2% gain, another month of outpacing peers.

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."

Target's stock rose 2.4% premarket to $47.40.

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.

Teen-apparel chains, especially Abercrombie & Fitch Co. (ANF), were expected to be the weakest performers by sector. 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. Shares rose 2.9% to $39.70.

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. Its stock jumped 4.6% premarket to $20.60. Department stores also 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 posted a surprise 0.2% increase, which was aided by strength in the accessories and women's departments. Shares added 2.1% to $52.97.

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

-By Kevin Kingsbury, Dow Jones Newswires; 212-416-2354; kevin.kingsbury@dowjones.com