Ahead of the Bell: Discount retailers

Goldman Sachs analyst Adrianne Shapira said discount retailers outperformed expectations for June same-store sales, especially Wal-Mart Stores Inc., Costco Wholesale Corp. and BJ's Wholesale Club Inc.

"Importantly, Wal-Mart--a key retail bellwether name--showed visible signs of support from stimulus-related spend," Shapira wrote in a client note late Thursday. "Physical checks continue to arrive and we suspect spending will further snowball (through) July."

Wal-Mart, the world's largest retailer, posted a strong 5.8 percent gain in same-store sales--topping expectations--because of economic stimulus checks and sales of grocery, entertainment and health and wellness items.

Same-store sales, or sales at stores open at least a year, is a key measure of retailer performance, because it measures growth at existing stores rather than from newly opened ones.

Shapira said department stores were somewhat weaker in the month, while J.C. Penney Co. and Kohl's Corp. did not provide an outlook for the second quarter.

"We believe increasing stock market and confidence volatility should continue to weigh on this segment's results," Shapira wrote in a client note.