Retailers are showing continued momentum, posting strong sales for April with the aid of the Easter holiday, but some caution prevails in the midst of surging gasoline prices and other uncertainties consumers face.

The later Easter holiday did appear to spur buying as shoppers hit stores during holiday breaks.

"Consumers, while cautious, are coming off a long winter and responding to the newness that retailers are displaying in their spring and summer merchandise," said Jharonne Martis, retail analyst at Thomson Reuters.

But gasoline prices that continue to rise, still high unemployment and the prospect of trying to pass higher cotton costs along to customers have also made the group cautious.

Among the stronger performers, warehouse club Costco Wholesale Corp. (COST) posted a 12% rise in April same-store sales, ahead of expectations for 8.9%, despite being closed on Easter. Costco operates gasoline stations at its sites and said higher fuel costs, as well as strength in foreign currencies, aided results.

Limited Brands Inc. (LTD) remained strong, posting a 20% rise in same-store sales, when 12.2% was expected. The operator of Victoria's Secret and Bath & Body Works also raised its first quarter guidance.

Regional department store chain Stage Stores Inc. (SSI) posted a 15.1% gain in April comparable sales, when 13.8% was projected. But the company cut its first quarter and full-year view based on earlier weakness and troublesome trends that it sees. "Our first quarter sales were disadvantaged by February's storms and a disappointing Easter business," Chief Executive Andy Hall said. "While April sales benefited from the Easter calendar shift (to later in the month), rising gas prices made for a more cautious consumer."

Apparel retailer Cato Corp. (CATO) posted a 17% rise in same-store sales, when 12.5% was projected and lifted its first-quarter guidance.

Teen retailers enjoyed business from Easter breaks, with Hot Topic Inc. (HOTT) ending a two-year string of monthly declines by reporting an 11% jump in same-store sales and raising its full-year outlook. Fellow teen retailer Zumiez Inc. (ZUMZ) also posted sales growth that exceeded analysts' expectations. The company said that while average prices rose, the amount of items bought fell, suggesting that consumers, although buying, are being cautious with their dollars. Buckle Inc.'s (BKE) same-store sales rose 14.5%, ahead of expectations for 12.5%.

The 25 retailers tracked by Thomson Reuters are expected to show an 8.4% rise in same-store sales, which would be their best showing in a year. The figure, added to March's 1.7% rise, to "smooth" out the performance of the two months as a way of accounting for this year's late Easter, would equal what is considered a healthy 5% gain.

There are also signs of trouble among retailers that do not report monthly same-store sales, including Sears Holdings Corp. (SHLD), which on Tuesday warned of a big first quarter loss. Big Lots Inc. (BIG) on Thursday posted a decline in first quarter sales, with the closeout retailer's chief executive saying business softened in the back half of the period on what it believes were "significant weather challenges."

Big Five Sporting Goods Corp. (BGFV) cited lower customer traffic when posting weak first quarter earnings and giving a very soft outlook. "We believe many of our consumers reduced purchases of discretionary items in response to the challenging economic environment, characterized by rising gas prices and high unemployment," Chief Executive Steven Miller said in a statement.

Gasoline prices are more than 30% higher than they were a year ago and the pinch is being felt. A recent Stifel, Nicolaus survey that found the number of consumers reporting that gas prices are having a "significant impact" on spending and budgeting decisions rose 12% year-over-year to 43%, the highest percentage since September 2008.

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

(Ian Thomson contributed to this report)
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