Target Corporation (TGT)
August 04, 2011 7:00 am ET
John Hulbert -
The comments on reported results in this summary relate to Target Corporation sales for the 4-week period ended July 30, 2011 compared with the 4-week period ended July 31, 2010. These sales results are included in the table of our sales release issued on August 4, 2011.
For the fiscal July period, reported comparable store sales increased 4.1%. This increase was driven primarily by an increase in average transaction size combined with a smaller increase in comparable store transactions. Overall, comparable store sales in July 2010 increased 2.0%.
The current month's sales release quotes Gregg Steinhafel, Chairman, President and Chief Executive Officer of Target Corporation as saying, "We're very pleased with Target's July sales performance, which again was at the high end of our expected range. In addition, back-to-school sales are off to a solid start, contributing to our confidence in the strategies we have in place and our ability to execute them, especially as we head into the 2011 holiday season."
For the second quarter, Target's comparable store sales grew 3.9%, representing a meaningful acceleration of 7.0% growth in the first quarter comparable store sales. In July, our integrated growth strategies continued to drive strong sales increases in commodity category. Grocery comparable store sales increased in the mid to upper teens, while Healthcare, Beauty and Household Essentials increased in the mid to upper single-digit range.
Strength in Apparel continued in July with a comparable sales increase just below the company average, consistent with the healthy growth rates Target experienced prior to the recession. Within Apparel, sales were strongest in intimate hosiery performance along with women's and men's apparel, with softness in jewelry/accessory.
Comparable store sales in Hardlines decreased in the low single-digit range, the strongest performance in sporting goods and the softest performance in Music, Movies & Books.
Comparable store sales in Home were down slightly, with the strongest performance in housewares, which grew faster than the company average and the softest performance in Decorative Home.
Consistent with June results, regional comparable store sales performance was less volatile than earlier in the year. The region experienced a healthy increase in comparable store sales where every group grew its comparable store sales. At month end, our inventory was in very good condition.
For the month of August, our comparable store sales results will compare the 4 weeks ending August 27, 2011, to the 4 weeks ended August 28, 2010. We expect a low to mid single-digit increase in Target's comparable store sales for this period.
Target's current sales disclosure practice includes a sales recording on the day of our monthly sales release. Our next sales recording is expected to be issued on Thursday, September 1, 2011, and may be accessed by calling (866) 526-7639.
The statement on expected sales performance is a forward-looking statement within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements speak only as of the date they are made and are subject to risks and uncertainties which could cause the company's actual results to differ materially. The most important risks and uncertainties are described in the Risk Factors section of the company's Form 10-K for the fiscal year ended January 29, 2011.