(Adds Target same-store sales outlook for July, updates stock prices.)

 
   DOW JONES NEWSWIRES

Retailers posted yet another month of dropping same-store sales as June's figures came in below analysts' already dismal expectations amid bad weather and consumers' continued reluctance to spend.

Analysts have already said weather would likely hurt the sales results, since summer seasonal sales were far down because of cool temperatures and rain in the Northeast and mid-Atlantic regions. Several companies have said that was the case. Retailers also suffer from tough comparisons to last year, when consumers were still getting their government stimulus checks.

Among the worst performers was Zumiez Inc. (ZUMZ), which posted a 19% drop. Analysts surveyed by Thomson Reuters expected a 20% fall.

Abercrombie & Fitch Co. (ANF) posted another month of dour results, with a 32% same-store sales drop, compared with analysts' expectations for a 27% decline. The company hasn't reported growth since April 2008 and is increasingly shedding its no-markdown mantra. Cheaper rival Aeropostale Inc. (ARO) maintained its recent gains with a 12% increase in June, beating views.

Target Corp. (TGT) maintained its woes with a slightly worse-than-expected 6.2% decline and expects them to continue in July. Despite the sales woes, Chairman and Chief Executive Gregg Steinhafel said the company expects earnings this quarter to meet or exceed current analysts' estimates. That helped push the stock up 4.5% to $38.95 recently.

Other shares rising were off-price apparel operators TJX Cos. (TJX) and Ross Stores Inc. (ROST), up 5.8% and 3.5%, respectively, as they boosted their fiscal second-quarter earnings estimates some 10 cents a share. The TJ Maxx and Marshalls parent reported a surprise 4% same-store sales increase, saying traffic increased and lean inventories enabled it to introduce new merchandise.

One of the big surprises of the day came from Buckle Inc. (BKE), which saw its 22-month streak of double-digit growth finally end as the company posted a 9.6% increase, missing analysts' estimates for a 12% jump at the teen- and 20s-focused purveyor of trendy tops and edgy jeans and footwear. Buckle's shares were recently down 3.6% at $29.30.

The industry's results were only the second without Wal-Mart Stores Inc. (WMT) in 30 years. The world's largest retailer said in May it would stop giving monthly sales data, following the lead of other smaller peers in recent years. But Macy's Inc. (M) last fall began giving such data again, saying the economic turmoil warranted its investors getting a read on the company's performance more often.

Expectations for the month were in line with the dreary sales that have been reported so far this year. A drop in June would mark the 10th straight month of same-store sales declines, the longest since Thomson Reuters began collecting the data in 2000.

Wall Street Strategies analyst Brian Sozzi said the new problem is the state of retail as it moves to the back-to-school season and the holidays, especially given that retailers will probably have lots of clearance goods on their floors mixed with new full-price items because of the slow seasonal summer sales.

Department stores, for more than a year the laggard among the various retail segments broke the mold - still posting big declines but beating analysts' expectations - as Macy's 8.9% drop nearly matched analysts' views.

J.C. Penney Co. (JCP) saw same-store sales fall 8.2%, a smaller drop than expected. The company also projected a narrower second-quarter loss than it had predicted and sees same-store sales this month down 13% to 16%. Luxury retailer Saks Inc. posted a 4.4% drop, well above analysts' views for a 12% slide.

Discounters, which have largely been holding up amid the recession, reported largely lower results as well. Costco Wholesale Corp. (COST) had a 6% drop, in line with expectations. Even excluding gas, U.S. same-store sales fell 1%. Smaller rival BJ's Wholesale Club Inc. (BJ) continued its recent outperformance, reporting 2.7% growth excluding gasoline.

On the apparel side, Limited Brands Inc. (LTD) widely missed analysts' expectations, posting a drop of 12% where analysts expected a 7.9% decrease. Children's Place Retail Stores Inc. (PLCE) also missed analysts' expectations with a 12% drop.

At the same time, Gymboree Corp. (GYMB) boosted its second-quarter earnings outlook by 10 cents to a range of 19 cents to 24 cents from its prior estimate of 9 cents to 14 cents. Its stock recently rose 3.8% to $35.80.

-By Kerry Grace Benn, Dow Jones Newswires; 212-416-2353; kerry.benn@dowjones.com