Target’s November Sales Top Expectations
Minneapolis-based Target Corporation announced Thursday that its net retail sales for November totaled $6.01 billion-up 5.7 percent from $5.7 billion during the same period last year.
During the four weeks that ended November 27, same-store sales-sales at stores open for at least a year and an industry barometer-jumped 5.5 percent compared to the same period in 2009. Analysts polled by Thomson Reuters had predicted a 3.7 percent increase.
“November sales were better than expected, driven by very strong guest traffic throughout the month,” Gregg Steinhafel, chairman, president, and CEO, said in a news release. “Guests are responding to our compelling holiday merchandising and marketing programs, and they love our new 5 percent REDcard rewards program.”
Target's REDcard allows customers to receive 5 percent off purchases at store locations and online at Target.com.
A couple of weeks ago, Target announced positive third-quarter results, which beat analysts' expectations with respect to earnings per share. Steinhafel said at that time that the company is “well-positioned for the fourth quarter”-and it expects same-store sales to outperform all other quarters over the past three years.
Steinhafel said Thursday that the retail giant is “well-prepared for the biggest month of the year,” and it still expects the positive results for the fourth quarter that it previously announced.
An uptick in shoppers during this holiday season undoubtedly influenced Target's November sales. On both post-Thanksgiving shopping extravaganzas known as Black Friday and Cyber Monday, Target's Web site was among the most heavily trafficked.
Target-which operates a retail segment and a credit-card segment-serves guests at 1,752 stores in 49 states nationwide and at Target.com. It is Minnesota's second-largest public company based on revenue, which totaled $65.4 billion in its most recently completed fiscal year.