U.S. MARCH RETAIL SALES CUT BY LATE EASTER U.S. retailers' lackluster March sales were due to a late Easter, according to analysts who expect a recovery in April. "Sales look soft because of the Easter shift, but underlying business is better than the numbers indicate," said Bear Stearns analyst Monroe Greenstein. Analysts generally average the sales results of March and April to account for the variation of Easter's occurance. This year, Easter is being observed on April 19, which is three weeks later than last year. Analyst Edward Johnson of Johnson Redbook Associates said sales for March rose an unadjusted 2.5 to 3.0 pct, and a seasonally adjusted 5.5 pct to six pct, compared to an adjusted 5.7 pct last year. "The obvious question is whether these numbers indicate that the consumer activity is slowing, but it does not appear to be because liquidity and employment are rising," said analyst Jeff Edelman, analyst of Drexel Lambert and Burnham. Overall, analysts said first half sales are coming in according to expectations. Sales for all of 1987 are expected to rise about 5.5 pct to six pct, up a bit from 1986's rise. In March, sales of housewares, furniture and big ticket items were stronger than apparel sales, signaling to many analysts that apparel sales will be strong in April as the holiday nears. "Sales gains in home appliances and home fashions reflect a continuing strength in the housing market," said Edward Brennan, chairman of Sears Roebuck and Co <S> which reported an overall sales gain of 4.2 pct. Brennan said sales of women's sportswear were also excellent. "Sears' total apparel sales was up only modestly, but even a modest improvement in apparel is a very good accomplishment due to the fact that most people will buy apparel in April," said C.J. Lawrence analysts Harry Mortner. J.C. Penney Co Inc <JCP> and Dayton Hudson Corp <DH> were among the weaker performers with comparable stores sales declining 1.5 pct and 4.9 pct, respectively. Penney's store and catalog sales declined 1.3 pct overall and Dayton Hudson's overall sales rose 4.8 pct. Penney chairman William Howell said, "Sales continued strong for catalog operations and, geographically, ranged from very active in the east to weak in the economically depressed southwest." "Penney's been shifting away from leisure time activity wear to other apparel lines, which yield higher profit margins, but are currently hurting sales," said Greenstein of Bear Stearns. Hudson chairman Kenneth Mackes cited the late Easter for the decline. Edelman of Drexel said that "Hudson had a tougher comparison because it had an exceptionally good 1986." Most analysts agreed that promotions are slightly lower than last year. "Retailers are not planning for much - inventories are being kept lean, markdowns are lower than last year, but sales are coming through anyway," said CJ Analyst Harry Mortner. Mortner said he expects profits in the first quarter to be better than he had originally expected in the beginning of the year. Most retailers report their first quarter in the middle of May. MARCH RETAIL SALES FOR MAJOR U.S. RETAILERS STORE PCT 1987 1986 SEARS 4.2 2.6 BIL 2.5 BIL K MART 4.6 2.2 BIL 2.1 BIL JC PENNEY (1.3) 1.1 BIL 1.1 BIL WAL-MART 32 1.1 BIL 855 MLN FEDERATED 4.9 934 MLN 891 MLN MAY 3.5 885 MLN 855 MLN DAYTON 4.8 792 MLN 756 MLN WOOLWORTH 0.2 591 MLN 590 MLN ZAYRE 12.7 522 MLN 464 MLN