NEW YORK -- American shoppers, taking advantage of deep discounts and tax-free holidays, opened up their wallets a little more for back-to-school spending compared with last year, giving some retailers better-than expected gains for August.

The results provided a sliver of hope for the recovery amid an unrelenting batch of bad news, from slumping home prices and high joblessnes, that have pointed to a stalling economy and set up dire expectations for the back-to-school shopping season. Still, the retailers' gains mask underlying weakness in consumer spending as they're being compared with declines a year ago and worries still abound about the critical holiday season.

Shoppers remain selective and are focusing on the necessities, a trend that is expected to continue through at least the holiday shopping season.

Among department stores, Cincinnati-based Macy's said revenue rose in August as back-to-school shopping helped the company top Wall Street forecasts. Revenue from locations open at least a year rose 4.3 percent during the month.

J.C. Penney Co. had a 2.3 percent increase. Overall, men's and children's apparel were the top performing merchandise divisions during the month. Kohl's Corp.'s reoprted a better-than-expected 4.5 percent gain on strong sales of home and men's merchandise, and footwear.

Target said sales of back-to-school items and food helped revenue in stores open at least a year rise 1.8 percent in August. But the discount retailer's results fell just short of expectations for a 2 percent increase. Food, health care and beauty items were the strongest sellers. Electronics and home decorations were weaker.

Limited, the Columbus, Ohio, operator of Victoria's Secret and Bath and Body Works, posted a 10 percent gain in August. Gap said its key sales figure rose was flat in August, helped by better results at its Banana Republic chain.

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