Target's June revenue gauge rises, but misses view
NEW YORK—Discount retailer Target Corp. said Thursday that a key revenue measure rose 2.1 percent in June as shoppers spent more on food and health and beauty items.
But the growth in revenue at stores open at least one year was slightly lower than the 2.4 percent rise that analysts surveyed by Thomson Reuters expected.
Its shares fell 47 cents to $57.31 in premarket trading.
Revenue in stores open at least one year is a key gauge of a retailer's health because it excludes results from stores recently opened or closed.
Total sales for the five weeks ended June 30 rose 2.6 percent to $6.42 billion.
The strongest categories were food and health and beauty. Home products were weaker. Revenue in stores open at least one year rose in every region. Results were strongest in the Midwest and West and lowest in the South.
Target reiterated guidance for the fiscal second quarter. It expects earnings excluding one-time items will be 94 cents to $1.04 per share. Analysts expect $1.01 per share.
In July, it expects revenue in stores open at least one year will rise in the low- to mid-single digits.