Target’s May Sales Miss Analyst Estimates
Minneapolis-based Target Corporation reported a slight jump in same-store sales in May, but the increase failed to meet analyst expectations.
Same-store sales-sales at stores open for at least a year and an industry barometer-increased 2.8 percent in May, below the 3.5 percent that Wall Street analysts expected.
Net sales for the four weeks that ended on May 28 totaled $4.8 billion, an increase of 3.8 percent from $4.6 billion in the same period last year.
Target said that sales were “near the low end” of its expected sales range due to slow traffic in the second half of the month.
“Our guests continue to shop cautiously in light of higher energy costs and inflationary pressures on their household budgets,” Gregg Steinhafel, Target's chairman, president, and CEO, said in a statement. “As a result, we're focused on delivering more value than ever by offering reliably low prices on high quality, well-designed merchandise both in our stores and at Target.com.”
Year-to-date, net sales totaled $20.4 billion in May, up 3 percent from the same period last year. Year-to-date same-store sales, meanwhile, were up 2.2 percent in May.
Target-which operates a retail segment and a credit-card segment-now serves customers at 1,755 stores in 49 states nationwide and on its Web site. It is Minnesota's second-largest public company based on its revenue, which totaled $67.4 billion in its most recently completed fiscal year.