Retailers reported their best monthly sales in more than a year, bolstering hopes that consumer spending is slowly on the mend. Still, it was a very easy year to beat, and analysts pointed out that momentum had slowed at some chains after an encouraging back- to-school season. October same-store sales - sales at stores open at least a year - rose 2.2 percent at the nation's major retailers, according to a survey by consulting firm Retail Metrics. Particularly encouraging were the gains at Nordstrom and Gap, whose clothing is pricier and more fashionable than what wallet-conscious shoppers would typically spring for, said Hans Sternberg, author of the new book, "We Were Merchants," which recounts his career as a Louisiana department-store entrepreneur. "Gap is a good bellwether," Sternberg said, noting that the mall-based chain's same- store sales jumped 4 percent. "People don't shop there just for low prices." In addition to Gap, off-price clothiers TJX and Ross Stores raised their earnings outlooks. But Abercrombie & Fitch was one of the bigger disappointments, logging a steeper-than-expected 15 percent decline. American Eagle Outfitters also surprised Wall Street with a 5 percent drop. Red-hot teen chain Aeropostale said its same-store sales rose only 3 percent, missing the consensus of 14 percent, but it nevertheless raised its third-quarter profit outlook. Department stores' results were mixed. While Nordstrom and Saks reported stronger-than-expected sales gains, Neiman Marcus suffered a 6 percent drop. Macy's and J.C. Penney reported drops of 0.8 percent and 4.5 percent, respectively. While yesterday's results stoked hopes that pent-up demand for luxury goods could fuel a fourth-quarter recovery, the overall outlook remains lackluster, according to Sternberg. He predicts high-end holiday sales will be flattish. "I think we're looking at minus 1 to plus 1 (overall holiday same-store sales)," Sternberg said. "Those are still bad numbers considering that last year was a downer." LUXURY SHOOTS Luxe retailers Nordstrom and Saks Fifth Avenue are beginning to show some upside, while the teen scene continues to lose steam. ANALYSTS EXPECTATIONS OVER NORDSTROM SAKS UNDER AEROPOSTALE AMERICAN EAGLE

Originally published by JAMES COVERT.

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