By ELIZABETH HOLMES, Wall Street Journal

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 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 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.