With retailers reporting December sales numbers today, Wall Street and consumers alike are interested to see if the holidays gave a much-needed boost to what was a dismal November.

Wal-Mart (WMT), which often ranks ahead of the pack in sales, reported December earnings that missed the company’s original forecast with sales falling by 0.1%. This brings some question to the popular belief that discount retailers would prevail in the face of a deepening recession.

At Bentonville, Ark.-based Wal-Mart, revenue increased 1.7% last month for same store sales, falling far short of the Thomson Reuters estimate of 2.8%. In 2007, Wal-Mart saw same-store sales grow by 2.4% in the same period.

At this point, Wal-Mart predicts fourth quarter earnings per share will be between 91 cents and 94 cents per share, below original predictions of $1.03 to $1.07 per share. The company said that low sales at its Sam’s Club division and increased expenses contributed to the decline. For January, the company predicts sales growth will be between 0% and 2%.

Also reporting in the retail sector on Thursday are Sears (SHLD) and Williams Sonoma (WSM).

Sears posted a 13% drop in sales at its Sears branded stores, and a 1.1% drop in sales at Kmart. Same store sales fell by 7.3%. The resurgence of layaway programs is believed to have benefited Kmart, while falling sales in the apparel sector likely hurt Sears.

At San Francisco-based Williams-Sonoma, same store sales fell 24.2%, which was in line with company and analyst predictions. The company has now decreased its outlook for the current quarter.

During the holidays, Williams-Sonoma said revenue fell 22% from $606.7 million down to $471.7 million. Fourth-quarter earnings will be closer to 10 cents per share rather than 30 cents per share, the company said.

Macy's also reported dismal earnings, with same-store sales falling by 4%. However, this figure is better than the analyst prediction of 5.3%. For the combined November and December holiday shopping season, Macy's same-store sales fell 7.5%. 

As a result, Macy's has cut its fourth-quarter earnings prediction to .90 cents to $1.00 per share, down from its original outlook of $1.10 to $1.30 per share. 

Moving forward into 2009, Macy's will be closing 11 stores in nine states that it says are underperforming.