April retail sales were weaker than expected

WASHINGTON (AP) ? In a sign that the economy may be slowing, retail sales were weaker than expected in April as soaring gasoline prices forced consumers to cut back on spending in other areas.

Retail sales rose by 0.5 percent last month following a 0.6 percent advance in March, the Commerce Department reported Thursday.

The April increase was weaker than the 0.8 percent Wall Street had been expecting and was disappointing in light of reports last week of strong April sales at the nation’s big chain stores, reflecting warmer-than-usual weather and a late Easter that boosted clothing sales.

The government report on retail sales showed that virtually all of the strength last month came from a big 4.6 percent jump in sales at gasoline stations. That reflected a sharp rise in prices with gasoline selling near $3 per gallon in many parts of the country.

? ? ? ? ?

NEW YORK (AP) ? Moderate price department store juggernauts JCPenney Co. and Kohl’s Corp. reported double-digit gains in first-quarter profit that beat Wall Street expectations. They also offered upbeat outlooks.

Penney said its profit rose 22 percent in the first quarter, as holding overhead costs below the rate of inflation helped the department store operator supplement a modest revenue increase.

Rival Kohl’s posted a 34 percent profit increase, boosted by strong sales across all segments of its business. The Menomonee Falls, Wis.-based retailer also raised its earnings outlook for the year.

Still, analysts worry that higher energy costs and higher interest rates, which makes financing debt more expensive and could further cool the housing market, will crimp consumer spending.