Lehman Bros. analysts say they have revised their prediction of broadline and department-store sales to a 3% increase instead of the 3.4% rise they were forecasting. Wal-Mart's 2.2% expected increase, at the lower end of its 2% to 4% predicted rise, in part, dropped Lehman's outlook.

However, analysts expect a 2% to 4% boost by J.C. Penney instead of a previously expected 1% to 3% lift. Predictions for Target are also strong, with same-store sales estimated between 4% and 5%.

Trends highlighted by Lehman's broadline report include increasing online and gift card sales, heightened traffic closer to Christmas and dominance by discounters. The best-selling items were electronics, followed by women's shoes, handbags, premium denim and women's sportswear, the report says.

Meanwhile, Lehman analysts say that apparel retailers' same-store sales should come in at 1.8% this year, versus 3.7% during the same year-ago period. Heavy promotional activity also characterized the month for these chains, according to the report.

Lehman predicts a strong, 19.2% gain for Abercrombie & Fitch and a 5% rise for Children's Place stores. American Eagle Outfitters is forecast at a 2% increase this year, suffering because of the comparison to its 32.8% surge in December 2004. Gap Inc. is expected to drop 2.3%.

A Wachovia Securities report says that mild winter weather and falling gas prices may have lead to an "improved consumer spending attitude." However, that does not mean all retailers performed well. Analysts predict a 4% to 6% slide for Pier 1 Imports and a 7% to 9% plunge for crafts retailer Jo-Ann Stores.