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Target's same-store sales slide 6.1% in May

Posted Jun 5th 2009 10:40AM by Brian White (RSS feed)
Filed under: Bad news, Target Corp. (TGT)

Since late last year, retail has been hurt as the recession dug in for the winter and stayed throughout the start of the 2009 summer. Although job loss data for May just in indicates a steep drop (leveling off perhaps?), consumers are still pinching pennies and keeping savings under the proverbial mattress. One of the continuing casualties -- Target Corp. (NYSE: TGT).

The second-largest discount retailer in the U.S. said that same-store sales for May came in at a -6.1% level -- worse than analysts had forecast. Target CEO Gregg Steinhafel indicated sales "were somewhat below our expectations." By comparison, average same-store sales from 32 retailers in May dropped 4.6%, putting Target at a worse-performing range than most.

Continue reading Target's same-store sales slide 6.1% in May

Target warns of slow holiday spending, shares nosedive

Posted Dec 7th 2007 1:11PM by Brian White (RSS feed)
Filed under: Bad news, Target Corp. (TGT)

Target (NYSE: TGT) generally is not in the spot of releasing depressing news, but it does happen occasionally. The Wal-Mart (NYSE: WMT) competitor, who is flashier and trendier despite selling much of the same merchandise (but marketed much better) said this week holiday shopping began slower than it had expected, and that Q4 profits might fall "well short" of analyst expectations.

Them's fightin' words, and as such, Target shares slid about 7% on the news yesterday. Target shares, which closed above $60 Wednesday, saw a slip to below $54 yesterday and has recovered a bit to over $55 this morning. Is this the end? Of course not, but when a holier-than-thou retailer with a rosy amount of Wall Street cred announces a downfall in guidance and disappointing holiday sales (at least, at the start), things are sure to happen. And happen they did.

Although Target execs said that sales the two days after Thanksgiving met its expectations, sales during the final week of November were soft in hot holiday categories such as toys, holiday merchandise and home and apparel goods. In addition, same-store sales rose just 1.1% when adjusted for an unusual full week that existed this year after Thanksgiving. Are customers really pulling back on holiday spending this year as Target's results would seem to indicate? Outside of the Black Friday and Cyber Monday shopping days, maybe that's the case. We won't know real details until December's conclusion, though.

Target (TGT) cuts back on October sales forecast

Posted Oct 24th 2007 12:14PM by Brian White (RSS feed)
Filed under: Bad news, Target Corp. (TGT)

Target (NYSE: TGT) announced a weaker October sales forecast this week, causing its shares to take a small decline as analysts, as usual, responded to mind-numbingly short-term mental ramblings and may have seen a possible retail apocalypse coming. Well, that's a tad dramatic, but you get the picture.

Target officials said that same-store sales for October would only increase 2% to 4% for October. Reasons were given as higher-than-anticipated daily sales volatility and declining sales for the first two weeks of the month. Although previous sales forecasts were in the range of 3% to 5%, this minor, predictive drop was enough to give some investors the willies. Too bad warmer weather in October undercut the general seasonal spike in winter apparel sales. Ah -- the market is a slave to Mother Nature, yes?

The problem as I see it is with Target trimming its sales forecast for the second month in a row. In September, the discount retailer took its guidance from a 4% to 6% same-store sales growth figure down to 1.5% to 2.5%, setting up a few possible retail outlook shenanigans from industry pundits who saw this as one of the first signs of increasing consumer spending weakness heading into the holiday shopping season. Time to whip out that crystal ball and see what's on tap for November sales. More at 11...

Target (TGT) sales increase 6.1% in August

Posted Sep 7th 2007 12:35PM by Brian White (RSS feed)
Filed under: Earnings reports, Target Corp. (TGT)

After larger rival Wal-Mart Stores, Inc. (NYSE: WMT) reported a same-store sales gain of 3.1% yesterday, Target Corp. (NYSE: TGT) did the world's largest retailer one better. Target releases results after the bell yesterday, stating that it achieved a same-store sales increase of 6.1% for August -- way above its own estimates and analyst estimates as well.

Target officials placed the sales gain reasons squarely on strong sales gains and bigger receipts on electronics, health-care products and food. Target didn't even mention back-to-school specials or more customer trips due to lowered prices on these seasonal product segments. However, Wal-Mart's August sales gain was attributed to this.

Is Target continuing to ramp up higher-ticket (and margin) sales every quarter while Wal-Mart falls back into its comfort zone of dropping prices to gain sales? Seems that way, at least a little. Analysts had pegged Target's August sales to be in the range of a 5% gain, with Target's own estimates sitting in the 2.5% range. Both of those numbers were blown away. When Target sees gains in both the number of transactions and the average size of each transaction, the retailer is doing something right. Is history holds

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Last updated: November 25, 2009: 06:03 PM

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