by Calculated Risk on 3/08/2007 08:56:00 AM

From MarketWatch: Wal-Mart Feb. sales miss Street view

Wal-Mart Stores Inc. said Thursday that February same-store sales rose moderately, missing Wall Street's expectations, hurt by weakness in clothing, home merchandise and hardlines.

For March, the world's largest retailer expects sales at stores open at least one year to rise 1% to 2%, and it expects the softness in clothing and home goods to remain through spring.

Bentonville, Ark.-based Wal-Mart the world's largest retailer, said February total U.S. same-store sales rose 0.9%.

And from AP: Retailers Post Disappointing Feb. Sales

The nation's retailers had a slow start to the spring season as unseasonably cold weather in February chilled demand for lightweight apparel and left merchants with disappointing sales. The slowing economy, particularly the weakening housing market, could challenge shoppers in the months ahead.
...
"Cooler weather clearly dampened spring apparel sales," said Ken Perkins, president of RetailMetrics LLC ... But Perkins also said major concerns for consumer spending in the months ahead are the defaults and delinquencies in the mortgage industry. That, coupled with the decline of mortgage equity withdrawls that give consumers extra cash, could curtail spending.

According to Thomson Financial, of 35 merchants that reported February same-store sales results so far, 10 beat estimates, while 24 missed and one met expectations. Same-store sales are sales at stores open at least a year and are considered the best measure of a retailer's health.

Was it the weather? Or is this a sign of spillover from the housing slump? It is way too early to tell.