After seeing soft holiday sales in December, the retail giant saw a significant jump in same-store sales last month—double the increase that analysts expected and on the high end of the company’s own expectations.
Same-store sales for Minneapolis-based Target Corporation jumped 4.8 percent in January—more than double the increase expected by Wall Street.
Analysts polled by Thomson Reuters predicted a more modest 2.1 percent boost in same-stores sales—sales open at least a year and an industry barometer.
Meanwhile, net retail sales for the four weeks that ended on January 28 totaled $4.6 billion, representing a 5.1 percent jump from the same period last year.
“January sales were near the high end of our expected low to mid single-digit range, reflecting strong performance in both discretionary and non-discretionary categories,” Target Chairman, President, and CEO Gregg Steinhafel said in a statement. “Sales trends were healthy throughout the month and across the country.”
Shares of Target’s stock were trading up about 1.1 percent at $51.98 mid-morning on Thursday following news of its January sales.
Target’s strong sales last month follow a weaker-than-expected December. Despite launching various discounts and promotions in an attempt to capture significant sales during the holiday season, Target’s same-store sales that month rose 1.6 percent, less than the 3.1 percent increase predicted by analysts.
Year-to-date, Target’s same-store sales are up 3 percent, and its net retail sales are up 4.1 percent to $68.5 billion.
Target’s fiscal year ended in January, and its sales results for that period will be announced February 23.
The retailer serves customers at 1,767 stores and on its website—and it will expand into Canada next year. It is Minnesota’s second-largest public company based on revenue, which totaled $67.4 billion in the fiscal year that ended in January 2011.
—Christa Meland
(cmeland@tcbmag.com)