Retailers cash in on rebate checks

Wal-Mart Stores Inc and Costco Wholesale Corp said June sales rose more than expected as shoppers facing soaring gasoline and food costs used federal tax rebates to buy discounted clothes and groceries.

Sales at stores open at least a year climbed 5.8 percent at Wal-Mart, ahead of its prediction of as much as 4 percent. The world's largest retailer said today that second-quarter profit would be higher than it previously forecast. Costco rose 9 percent, while analysts estimated an 8.1 percent gain.

Discounts of 65 percent on Ralph Lauren shirts at Macy's Inc and clearance sales at Limited Brands Inc's Victoria's Secret lured shoppers who received rebate checks last month.