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Retailers have delivered a late-summer surprise, with sales for the key back-to-school buying month of August largely coming in better than expected.

Department stores and teen retailers, among the most vulnerable, fared the best in many cases.

Kohl's Corp. (KSS), J.C. Penney Co. (JCP) and Macy's Inc. (M) all beat expectations and the latter two said back-to-school sales were going well. Macy's did sound a note of caution, with Chief Executive Terry Lundgren saying the company "continues to watch economic trends carefully."

Two major upscale department stores took divergent tacts last month, as a rocky stock market created jitters among the affluent. Nordstrom Inc. (JWN) posted a 6.3% rise in comparable-store sales, ahead of projections for 5.9%. Saks Inc. (SKS) reported a 1% rise when 4.3% was expected.

The big teen retailers fought a very promotional battle during the month and Abercrombie & Fitch Co. (ANF) appears to have been one of the victors. The company's same-store sales rose 6%, when a 5,9% advance was expected by analysts. The showing compares with a 29% drop last year, when Abercrombie was holding on to its no discount strategy.

Aeropostale Inc.'s (ARO) same store sales fell 1% for the month, compared with expectations for a 1.2% rise and a 9% gain a year ago. The company said it "experienced stronger results in its peak back-to-school regions, reflecting a customer that is shopping closer to need."

American Eagle Outfitters Inc. (AEO) reported a 1% comparable-store sales gain when analysts' projected a 1.1% rise, and backed its earnings view for the current quarter.

Mass merchant Target (TGT), though, missed August same-store sales expectations, posting a 1.8% gain, when analysts were expecting 2%. The mass merchandiser was nonetheless upbeat, saying customer traffic was healthy throughout the month and that the August showing was in-line with its own expectations. Target had "the double-whammy" of very warm weather during the month and a limited amount of summer wear still in stock, said J.P. Morgan retail analyst Charles Grom.

Costco Wholesale Corp. (COST) posted a 5% rise in same-store sales when a 3.6% gain was expected. The warehouse club did even better when factoring in higher prices at its gas pumps and gains from stronger foreign currencies. On that basis, same-store sales rose 7%, when analysts were looking for 4.2%. The retailer's international operations were up 11%, compared with a 6% rise in the U.S.

"Things have been so poor in terms of the economy and even the stock market and that really pulled expectations down," said Stephen Hoch, marketing professor at the University of Pennsylvania's Wharton School. "Also, last year was a very bad year, so that makes the numbers look that much better."

In essence, "We're treading water on the retail front, and it was thought that we couldn't even do that," Hoch said.

But a number of factors led to muted expectations. Shoppers received a spate of poor economic news during the month, weathered extremely hot temperatures that took their minds off of the fall school start, and knew they had an extra week to wait for sales because Labor Day falls later in September this year.

All told, the 30 retailers tracked by Thomson Reuters are expected to post same-store sales growth of 2.5% for August, after a 2.9% drop last year and a 2.7% rise in July.

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

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