Target Same-Store Sales Up in June, Miss Expectations
Target Corporation’s same-store sales rose 2.1 percent in June, marking a less significant increase than the one that Wall Street analysts predicted and that company officials had hoped for.
Same-store sales—sales at stores open for at least a year—are a key barometer of retail performance. Analysts polled by Thomson Reuters expected Target to experience a 2.4 percent jump in June.
“Following better-than-expected performance in May, our June comparable-store sales were near the low end of our expected range,” Target Chairman, President, and CEO Gregg Steinhafel said in a statement.
Meanwhile, net retail sales totaled $6.4 billion for the five-week period that ended June 30—up 2.6 percent from the same period last year.
Minneapolis-based Target said in a recorded sales briefing that June sales were strongest in the food category, followed by health and beauty. Same-store sales rose in every region but were strongest in portions of the Midwest and the West.
Year-to-date, Target’s sales are up 5.1 percent and total $28 billion.
Target shares were trading down about 0.7 percent at $57.38 mid-morning Thursday on news of the June sales results.
Steinhafel said that Target is on track to meet its previously announced sales and earnings guidance for the fiscal second quarter. For that period, which concludes at the end of this month, the company expects adjusted earnings per share of 94 cents to $1.04 per share, excluding one-time items. Target also predicts a 3 percent same-store sales boost for the second quarter.
Target is Minnesota’s second-largest public company based on revenue, which totaled $68.5 billion in its fiscal year that ended in January. It operates 1,763 stores in the United States and plans to expand into Canada next year.