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Retailers are turning in mixed sales for July, a transitional month that offers early indications of back-to-school demand amid margin-cutting summer clearance sales.

The goal for the month was to get ready for fall, so a lot of summer merchandise was relegated to markdown racks as retailers brought in products for the important school-buying season. The figures that retailers are reporting suggest spotty success.

Trying to balance the two seasons was complicated by fall merchandise coming in at higher prices in some cases as increased cotton costs hit.

"Retailers certainly are dealing with higher costs and are taking steps to avoid shocking consumers," said Alison Paul, U.S. retail leader at Deloitte. "But there is no question prices will have to be raised."

One thing potentially complicating retailers' efforts was July's extreme heat, which encouraged shopping for warm-weather clothing but may have hindered purchases for fall. This was the warmest July nationally since Planalytics, a weather-tracking firm, began following temperatures in the U.S. in 1960.

The 25 retailers tracked by Thomson Reuters are expected to report 4.3% growth in July same-store sales. The figure is off from a relatively modest 2.8% gain a year earlier.

Since July is the last month of the second quarter for most retailers, a number of them are telegraphing how their results for the period will be.

Limited Brands Inc. (LTD) posted a 6% rise in July same-store sales, when 4.2% was expected. The operator of Victoria's Secret and Bath & Body Works raised its earnings projection to 44 cents a share to 46 cents a share, from 38 cents a share to 43 cents a share.

Hot Topic Inc. (HOTT) reported a 7.3% rise in same-store sales, when 0.5% was projected, with the gain aided by merchandise related to the latest blockbuster "Harry Potter" movie. The teen retailer shaved the amount it expects to lose in the second quarter to 8 cents a share from 9 cents to 11 cents.

Macy's Inc. (M) and Nordstrom Inc. (JWN) have yet to report but have been mentioned by analysts as possibly lifting their expectations.

Costco Wholesale Corp. (COST) said its same-store sales rose 10%, when 8.6% was expected, with much of the increase due to inflation in gasoline prices and strengthening foreign currencies.

Regional department-store chain Stage Stores Inc. (SSI) reported comparable store sales grew by 0.8% in July when analysts had projected a 2% rise.

Destination Maternity's (DEST) July same-store sales dropped 7.3%, just beating the 7.5% decline analysts were looking for.

Buckle Inc. (BKE), which came into the day with expectations for the biggest comparable-store sales rise, at 10.5%, ended up reporting a 6.8% increase. Fellow teen retailer Zumiez Inc.'s (ZUMZ) also missed, with an increase of 4.9%, when 7.5% was projected. The retailer was among those that said they saw a slowdown in the back half of the month, seeing a roughly 7% rise in the first two weeks that was roughly halved in the second two weeks.

It is unlikely any retailer can expect a completely smooth ride ahead. During July, gas prices remained elevated, home prices stayed near their lows, unemployment rose and the debt-ceiling debate in Washington had some negative impact late in the month.

"All of this has put the consumer in a tenuous mood going into the back-to-school season," said Patrick McKeever, retail analyst at MKM Partners.

While total spending is expected to reach $68.8 billion, the average family with school-age children will spend about $604 on back-to-school materials, a few dollars less than last year, according to the National Retail Federation. Almost 30% of consumers said they would make do with last year's school items to save money. Back-to-school spending is surpassed only by purchases during the Christmas holidays.

-Caitlin Nish contributed to this article

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

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