Target posted strong sales in July as the back-to-school season kicked off.
Target beat Wall Street expectations on an important retail industry metric in July. Sales at Target stores open at least one year rose about 4 percent compared to July 2010. Analysts expected a smaller 3.7 percent rise.
Thrivent Financial portfolio manager David Heupel says this is the second straight month Target has posted a robust sales figure.
"We've been waiting for this for most of the year to see this kind of number," said Heupel. "Particularly in light of the macroeconomic concerns we're seeing, and some of the peer numbers that weren't so robust, it's a good sign for the company."
Target says back-to-school sales were off to a solid start in July. Shoppers spent more per transaction and picked up more groceries and health care products.