Target Corp. reported Thursday that its stores hit the mark in June.
Same-store sales rose 4.5 percent, compared to 1.7 percent last year.
Sales for the five weeks ending July 2 were $6.3 billion, up 5.7 percent from the $5.9 billion in reported in the same period last year.
The report pleased Target CEO Gregg Steinhafel, who noted in a prepared statement that the same-store sales were near the high end of the company's expectations. "Our teams continue to focus on delivering fashion, value and reliability in every merchandise category both in stores and online," Steinhafel said. "We believe that offering our guests the right combination of wants and needs, along with a great shopping experience, will lead to continued success for Target."
Target shares are up $3.49, or 7.4 percent, to $51.78.
Overall sales so far this quarter at the Minneapolis-based retailer were just over $11 billion, up 4.9 percent, and year-to-date sales were $26.6 billion, up 3.6 percent.
Comparable-store sales, a key measure in retail that excludes new and recently closed stores, were up 3.8 percent so far this quarter, which compares to an increase of 1.5 percent year-over-year. Year-to-date, comparable-store sales were up 2.7 percent, a slight improvement over the 2.3 percent increase recorded in the same period in 2010.
Analysts at Janney Capital Markets noted that the 4.5 percent increase in same-store sales in June beat their 3 percent consensus estimate. Regionally, they said, Target's sales were strongest in the Midwest, Texas and Florida and weakest in the Southwest, Northeast and Central California.
