BY KAREN TALLEY

U.S. retailers delivered generally upbeat January sales on Thursday as the appetite for marked-down merchandise increased.

Costco Wholesale Corp. and Target Inc. reported strong gains, while Macy's Inc. missed expectations.

January is the last month of the fourth quarter for most retailers and the lightest month in terms of sales for the period. But results can be telling. Merchants reveal how well merchandise clearances worked and can give an initial read on how spring products are faring.

"January is where we look for all the postholiday clearance and it can be a mixed bag," said David Bassuk, head of the ...