Spending up, but only slightly

Wal-Mart Stores Inc. and Costco Wholesale Corp. posted December sales that exceeded analysts' estimates as shoppers increased spending at discount chains after feeling the pinch of higher gasoline costs and lower home prices.

The results provided a glimmer of hope after the worst holiday-sales season since 2002.

Limited Brands Inc., AnnTaylor Stores Corp. and Kohl's Corp. cut their profit forecasts following declines in December sales.

Wal-Mart, Costco and TJX Cos. shares rose as discounters and wholesalers attracted customers grappling with the worst housing slump in 27 years and gasoline that costs more than $3 a gallon. Two-thirds of companies tracked by Retail Metrics LLC missed sales estimates, led by women's clothing makers and department stores, resulting in the worst holiday shopping season in five years.

U.S. retailers' holiday sales gained 2.2 percent, the slowest pace in five years, the International Council of Shopping Centers said Thursday, based on results from 45 chains. Stores typically count on the final two months of the year for about a fifth of their annual sales.

U.S. retailers' December same-stores sales climbed 0.9 percent. A calendar shift moved a week of holiday sales into November from December, hurting last month 's results and helping November post a 3.5 percent increase, according to the council.

Macy's Inc. said sales dropped 7.9 percent. Gap Inc. said same-store sales fell 6 percent. Kohl's fell 11.4 percent.

Wal-Mart's December gains were driven by sales of food, prescription drugs and consumer electronics.