Target's Solid June Sales Lift Stock
Despite slumping consumer sentiment and other economic headwinds, Target (NYSE:TGT) said Thursday it grew its same-store sales in June by a stronger-than-expected 4.5%.
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.
Target wasnt alone as a number of other retailers reported stronger-than-expected June sales on Thursday, including Costco (NASDAQ:COST), Limited Brands (NYSE:LTD) and Gap (NYSE: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%.