Reuters

(Reuters)

Target's Solid June Sales Lift Stock

By Retail FOXBusiness

Despite slumping consumer sentiment and other economic headwinds, Target (TGT) said Thursday it grew its same-store sales in June by a stronger-than-expected 4.5%.

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The bullish figures from Minneapolis-based Target sent the discount retailers stock soaring nearly 7% ahead of the opening bell.

Target said its net sales jumped 5.7% last month to $6.26 billion. Same-store sales, a more closely followed figure by Wall Street, climbed 4.5% in June. Analysts had been calling for a rise of just 3.2%.

Looking ahead, Target said it expects June same-store sales to be up in the low-to-mid single digits.

Our teams continue to focus on delivering fashion, value and reliability in every merchandise category both in stores and online, CEO Gregg Steinhafel said in a statement. We believe that offering our guests the right combination of wants and needs, along with a great shopping experience, will lead to continued success for Target.

Its clear the bar had been set high by shareholders as Targets stock has lost about 20% of its value in 2011. Encouraged by the June sales figures, Wall Street bid Target 6.63% higher to $51.65 in the premarkets.    

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Target wasnt alone as a number of other retailers reported stronger-than-expected June sales on Thursday, including Costco (COST), Limited Brands (LTD) and Gap (GPS).

Overall, retailers tracked by Thomson Reuters reported a 6.5% increase in same-store sales last month, compared with forecasts for a rise of 4.9%.

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