Target says April sales to be 'much weaker' than planned
(AP) - Target Corp. says its April sales were coming in "much weaker" than expected, a sign that a month forecast to be tough for retailers may turn out worse than anticipated.
Target shares fell $1.91, or 3.1 percent, to $59.52 in extended trading after the announcement. The shares fell 69 cents, or 1.1 percent, during regular trading on the New York Stock Exchange.
The nation's second-largest discount retailer said it had previously expected April sales to drop 2 percent to 4 percent at stores open at least a year.
But results for April will be "much weaker than our initial plan" based on results from the first two weeks of the month combined with its outlook for the final two weeks, the company said.
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For March and April together, Target said those so-called comparable store sales -- a key retail barometer -- would rise 3 percent to 4 percent, instead of its previous estimate of 4 percent to 6 percent.
The company said it expects comparable-store sales for the quarter to rise 4 percent.
"We remain comfortable that our first quarter earnings per share growth will be consistent with our previous guidance for the full year," the company said.
Several retailers expected a tough April because Easter fell eight days earlier in the month than last year, pushing more sales of Easter-related goods into March.
Wal-Mart Stores Inc. had predicted that April same-store sales would be flat or fall 2 percent. Wal-Mart had not offered an April sales update as of Monday.
While Easter's impact was expected, erratic weather might have been a surprise -- April started out cold and rainy in much of the country and may have kept shoppers indoors.
(Copyright 2007 by The Associated Press. All Rights Reserved.)