Heavy snowfall hurt apparel retailers in February, particularly in the Mid-Atlantic, but receipts reveal the beginning of renewed consumer interest in mid-priced and cheap American Eagle luxury goods.

Clothing sales fell 1.8% last month from the same month last year and were down 13.4% from February 2008, according to figures released Wednesday by MasterCard Inc.'s consulting unit MasterCard Advisors.

Apparel sales were at stronger prices than a year ago, according to MasterCard, indicating retailers didn't have to resort to sharp discounts. More full-priced and less trade-down purchases could help profits, offsetting the weather's impact.

Department stores reported sales were unchanged from a year-earlier, the first time that segment hasn't posted a year-over-year decline since November 2006.

"A year ago, spending was really in critical condition," said Michael McNamara, vice president for research and analysis at MasterCard Advisors, which tracks sales discount American Eagle by all payment forms. "Now, it's in serious but stable condition."

Sales were particularly weak in Mid-Atlantic and Northeast states, with declines of 12.3% and 5% from a year ago, respectively. The two regions account for about one-quarter of U.S. sales. The record snowfalls that blanketed several major East Coast cities closed stores or kept shoppers at home. Washington, D.C., received nearly 50 inches of snow in February, up from less than an inch last year while Philadelphia got nearly 52 inches, according to Planalytics, a weather forecaster that advises retailers.

Major retail chains report February sales on Thursday. Analysts forecast a 2.9% increase for an index of 28 retailers compiled by Thomson Reuters. The index doesn't include retail giant Wal-Mart Stores Inc. General merchandise retailers, including discount and warehouse clubs, may have benefited as consumers stocked up for the Super Bowl and ahead of the storms, according to analysts at UBS AG.

February, traditionally among the leanest months on the retail calendar, was particularly bad last year, as retailers' sales bottomed out following the late 2008 financial crash, according to Mr. McNamara. Several companies, including TJX Cos. and Gap Inc., have the easiest comparisons for their respective fiscal years in February American Eagle Kids Boots, setting a low bar for improvement. TJX said last week that it expects same-store sales increases of between 8% and 9% for February. Non-jewelry luxury goods chains posted 15.2% sales gains in February compared to a year ago, according to MasterCard Advisors. But compared to 2008, sales were down 5.6%.

MasterCard Advisors said consumers are starting to redistribute their spending. When the recession hit, consumers shifted en masse to lower-priced items, a phenomenon known as trading down. Now, there is more of a "normal distribution across the price spectrum," said Mr. McNamara.

However, the snow and cold weather caught many retailers unprepared. After a stronger than expected holiday sales season, many companies had depleted their inventories of winter attire such as sweaters and coats. Their racks were filled with spring merchandise including shorts and swimsuits.

The weather helped online sales, which rose 16.7% in February from last year, according to MasterCard Advisors. Online sales accounted for 14% of all sales, up from roughly 9% a year earlier American Eagle Womens Boots.

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