In a file photo people leave the Wal-Mart super store on Thursday, June 16, 2005 in Round Rock, Texas.

The outlook for the retail industry was suddenly more upbeat Tuesday after Wal-Mart Stores Inc. raised its June sales outlook after months of tepid results.

Investors had a burst of enthusiasm for retail stocks, even as they waited for merchants to issue their sales reports on Thursday. And analysts also said Wal-Mart's news, released over the weekend, augurs well for the rest of the industry.

Still, with gasoline prices well over $2 a gallon, analysts question whether consumers' spending mood will last into the back-to-school season, one of the most critical periods in the retail year.

"(June) was a good month but whether that can be sustained is the question," said Michael P. Niemira, chief economist at the International Council of Shopping Centers. "Consumers were very much out there buying despite some of the negatives. At this point, we are not seeing any downside to the economy or oil prices."

Wal-Mart, the world's largest retailer, said Saturday it expects to post a 4.5 percent increase in same-store sales, a gain it attributed to consumers buying summer merchandise as warmer weather arrived. The forecast was welcome news after several months of disappointing sales gains, and surpassed Wal-Mart's original projection of a 2 percent to 4 percent gain.

A 4.5 percent in same-store sales, which reflect business at stores open at least a year, will mark Wal-Mart's biggest gain since May 2004, when it announced a 5.9 percent increase, according to Thomson Financial.

Last week, rival Target Corp. announced that same-store sales in June are expected to beat its projected 4 percent to 6 percent range.

Wal-Mart rose $1.52, or 3.15 percent to $49.80 on the New York Stock Exchange, where Target rose $1.48, or 2.71 percent to $56.04. Kohl's Corp. rose $1.71, or 3.07 percent, to close at $57.48.

The improved outlook from Wal-Mart "bodes well for the overall retail group," said Ken Perkins, president of Retail Metrics LLC, a research firm in Swampscott, Mass. "That should translate to stronger sales for discounters as well as for mid-tier department stores and apparel retailers."  

(Agencies)

downside: a negative aspect of something that is generally positive（不利方面）

outlook : belief about (or mental picture of) the future（前景）