U.S. Oct retail sales slightly ahead of estimates

By Nicole Maestri

NEW YORK (Reuters) - U.S. retail chains reported October sales slightly ahead of Wall Street expectations as consumers' austere approach to shopping slowly warms before the holiday season.

Costco Wholesale Corp said its October sales at stores open at least a year, or same-store sales, rose 5 percent, above analysts' expectation for a 4.7 percent gain, according to Thomson Reuters data.

While the warehouse club operator was helped by a weak U.S dollar, which boosted overseas sales, same-store sales in categories besides food, like sporting goods, cameras and small appliances, were positive.

Sales at Children's Place Retail Stores Inc and Hot Topic Inc fell less than Wall Street expected, and Hot Topic said it expects third-quarter earnings at the high end of its previous forecast.

In an early tally of results, 60 percent of retailers posted sales that beat expectations, while 40 percent came in below estimates, according to Thomson Reuters. That was based on reports from 11 out of 30 companies tracked.

October typically offers retailers a break between September's back-to-school shopping season and November's mad dash to kick off the pre-Christmas sales rush.

But this year, October sales are being watched closely for signs that a consumer recovery is taking hold heading into the holidays and that September's better-than-expected sales were not a fluke.