Early October retail sales top expectations

NEW YORK (Reuters) - U.S. retailers including wholesale club Costco and teen apparel chain Zumiez reported October same-store sales that beat Wall Street expectations, proving that unique merchandise and cheap price tags still have takers in a slow U.S. recovery.

Based on reports from 12 out of 28 retailers tracked by Thomson Reuters, six chains reported higher-than-expected monthly sales at stores open at least a year. Analysts are looking for a total increase of 1.6 percent for the month.

Zumiez and Victoria's Secret and Bath & Body Works parent Limited Brands Inc posted some of the biggest gains.

Both have won praise from analysts for their merchandise choices. While many see Limited as a destination for customers seeking smaller gifts, Zumiez has found many fans by carrying unique brands.

Zumiez posted a 21.5 percent rise in same-store sales in October, beating analysts' estimates of a 7.8 percent increase.

Despite unseasonably warm weather in most parts of the United States in October, Costco Wholesale Corp, Buckle Inc and other retailers also beat expectations.

Costco reported a 6 percent rise in October same-store sales, while analysts were expecting a 4.6 percent increase, according to Thomson Reuters Data.

Drugstore chains and teen apparel retailer Hot Topic Inc were among those that missed expectations.

Retailers got little help from Halloween-related sales toward the end of the month, evident from lackluster results at drugstore chains like Walgreen and Rite Aid .

Hot Topic's decision to winnow out its older styles like corsets and fishnet shirts weighed on its results during Halloween, when some shoppers traditionally visited its stores for their costumes.

An October same-store sales rise would mark the 14th consecutive month of increases for U.S. retailers, after a year of declines during the recession.

(Reporting by Dhanya Skariachan; Editing by Lisa Von Ahn)

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