NEW YORK - Macy's Inc. posted a lower second-quarter profit Wednesday and warned that its full-year earnings will be below expectations. That, along with a pared-down outlook from a key supplier and a somber government report on retail sales in July, suggests a persistent slowdown for retailers as they face the critical back-to-school and holiday shopping seasons.

Companies reliant on clothing sales - like Macy's and supplier Liz Claiborne Inc. - are having an especially tough time as shoppers focus increasingly on necessities with some exceptions like iPhones. The government's monthly report showed that sales at department stores and other general merchandise stores rose by 0.3 percent last month, just half the 0.6 percent June increase.

"The consumer is still stressed. ... Mall traffic is still down and shows few signs of resuming," said Craig R. Johnson, president of Customer Growth Partners, a retail consulting group, noting that Apple stores at the mall are among the few exceptions. "Back-to-school doesn't mean denims and tops any more. It means iPhones and laptops."

The Macy's and Liz Claiborne results were released as the Commerce Department reported that July's retail sales were the weakest in five months as economic problems from high gas prices to the weaker job market blunted the impact of billions of dollars in government stimulus payments.

Macy's earned $73 million, or 17 cents per share, in the quarter ended Aug. 2, compared with $74 million, or 16 cents per share, a year earlier. Excluding two one-time items, Macy's earned 29 cents per share from continuing operations.

Analysts surveyed by Thomson Reuters had expected earnings of 19 cents per share on revenue of $5.75 billion.

Revenues fell 3 percent to $5.7 billion, while same-store sales, or sales at stores opened at least a year, dropped 2.1 percent. Same-store sales are considered a key indicator of a retailer's health.

The decline was smaller than Kohl's Inc. same-store sales drop of 4.6 percent for the period and J.C. Penney Co.'s 4.3 percent decline, Thomas Weisel Partners analyst Liz Dunn wrote in a note to clients. Both retailers are set to report second-quarter results Thursday.

Macy's is also in good inventory shape: In fact, lower levels of marked-down summer goods hurt sales, but resulted in better-than-expected gross profit margins for the quarter.

"Our organization rose to the challenge and delivered strong second-quarter earnings and cash flow, despite the poor economic environment," said Terry J. Lundgren, Macy's chairman, president and chief executive in a statement.