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Retailers posted solid sales in June, although the gains were aided by significant promotions that could eat into their second-quarter earnings.

As the second biggest sales month for retailers behind December, a lot rides on June's receipts that reflect summer spending. Last month, retailers had tailwinds in the form of gasoline prices that were 11% lower than in May, Memorial Day falling in June instead of the prior month as it had last year and a boost to men's apparel buying from Father's Day.

Still, June, as usual, was highly promotional, with retailers from the high end to the low offering merchandise at deeply discounted prices to make way for back-to-school offerings that start rolling out in July.

"While the onset of warmer temperatures across much of the country helped, promotions and aggressive clearance were primary factors driving shoppers into stores to buy warm weather apparel," said Howard Tubin, retail analyst at RBC Capital Markets.

June is the middle month of the retailers' second quarter, and they showed 6.5% growth in same-store sales for the month, when 4.9% was expected, according to Thomson Reuters. The figure compares with 3.1% last year. Only three of the 25 retailers that reported same-store sales, or sales at stores open more than a year, missed expectations.

Just how deeply discounts affected earnings will be discussed when retailers begin delivering second quarter earnings reports next month. They will also be discussing initial reactions to higher cotton prices, which will begin being reflected in back-to-school merchandise.

J.C. Penney Co. (JCP) telegraphed its own difficulties by slashing its second-quarter earnings projection after posting a 2% rise in same-store sales when a 2.3% gain was expected. The department store now sees second-quarter earnings around 6 cents a share, when it initially predicted 20 to 24 cents a share, with same-store sales only expected to rise 1% to 2%.

J.C. Penney cited a "softer than anticipated selling environment for the moderate customer and a resulting higher level of promotional activity during the quarter" for cutting its numbers. June was also a month of internal upheaval for Penney, as it named Ron Johnson, head of Apple Inc.'s (AAPL) retail stores, to be its new chief executive.

Other department stores appear to be picking up market share from J.C. Penney. Macy's Inc. (M) lifted its second-quarter same-store sales growth expectation to 6% from 4.3% after better-than expected 6.7% gain in June. All of the store's units--Macy's, Bloomingdales and online--experienced growth during the month, Chief Executive Terry Lundgren said. Kohl's Corp. (KSS) reported a 7.5% gain when 2.9% was expected. All business lines reported growth, Chief Executive Kevin Mansell said.

Target Corp. (TGT), which has been turning in disappointing sales growth, broke out and delivered a 4.5% gain, which was at the high end of its projected range.

High-end retailers continued to put in a solid showing, with Nordstrom Inc. (JWN) reporting a 7.9% rise in comparable-store sales when 5% was expected. Saks Inc. (SKS) showed an 11.9% gain, well ahead of analysts' 7% projection.

Struggling Gap Inc. (GPS) even outdistanced analysts' expectations, coming in with 1% growth when a 2.3% drop was predicted. Gap was extremely promotional during the month, holding a lengthy "Everything Must Go" sale with merchandise as low as $5 and featuring mannequins wrapped in police tape in its windows. The approach was meant to clear merchandise for fall wear and "intentionally designed to capture attention," a Gap spokeswoman said.

Costco Wholesale Corp. (COST), which has been having solid sales gains with the aid of gasoline it sells at its pumps, posted a 14% rise in comparable-store sales when a 12.7% gain was expected.

Limited Brands Inc. (LTD), operator of Victoria's Secret and Bath & Body Works, returned to its recent run of very strong performance with 12% growth. Analysts had predicted a 3.8% gain. The company said its Victoria's Secret unit saw the biggest growth at 17%.

Teen retailers as a whole posted better-than-expected results for June as summer vacations started for most school children. Hot Topic Inc. (HOTT) had a 0.4% rise in sales when a 2.4% decline was expected. The growth was boosted by a 7% gain at its Torrid stores. Zumiez Inc.'s (ZUMZ) 9.8% climb handily beat Street expectations. Buckle Inc. (BKE) reported the biggest increase with a 10.8% gain, edging past expectations, and Wet Seal Inc.'s (WTSLA) 7.3% rise surged past the 1.9% forecast.

Off-price retailers did well. TJX Cos. (TJX) and Ross Stores Inc. (ROST) both beat expectations as shoppers remained budget conscious. TJX said its second-quarter earnings should now come in at or slightly above its earlier projection. Ross lifted its second-quarter guidance.

The challenge for retailers "is going to be profits," said Michael Londrigan, chairman of the of the fashion merchandising department at LIM College, which teaches management courses in retail and fashion. "Retailers came into the month with a little more inventory than usual because customers have been cautious, so that appears to have spurred greater than usual discounting. The challenge here is to be able to maintain the momentum of sales without further eroding earnings."

-By Karen Talley, Dow Jones Newswires; 212-416-2196; karen.talley@dowjones.com

--Caitlin Nish contributed to this article.

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