Target same-store sales edge up in April
Discount retailer Target Corp. said Thursday that same-store sales edged up 0.3 percent in April and it predicted first-quarter results will likely beat expectations.
Its shares rose $2.18, or 5.3 percent, to $43.65 during premarket trading.
Results were nearly in line with the 0.4 percent increase that analysts polled by Thomson Reuters had expected.
Grocery and health care products were among the best sellers. Clothing and home products were weaker.
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Total sales rose nearly 5 percent to $4.44 billion. Year-to-date, same-store sales fell 3.7 percent and total sales rose less than 1 percent to $14.36 billion.
Chief Executive Gregg Steinhafel said in a statement that financial results have been better than expected in the first quarter, due to a better performance by the company's credit-card business, lower expenses and fewer markdowns than expected.
The credit card unit has dragged down results in the past, and Target sold 47 percent of its credit-card receivables to JPMorgan a year ago. The company said credit-card results were in line with expectations, including write-offs of about $300 million and better early stage delinquencies.
The Minneapolis-based company said it expects first-quarter earnings "well above" analyst expectations. Analysts expect earnings of 51 cents per share.
Meanwhile, rival Wal-Mart Stores Inc. said sales of Easter merchandise and higher traffic helped April same-store sales rise 5 percent, ahead of expectations.
(Copyright 2009 by The Associated Press. All Rights Reserved.)
