Discount store operator Target Corp. (TGT) revealed on Thursday that comparable store sales for the month of January increased as expected by 0.5% while net retail sales increased 3.6% from the year-ago period. The company also noted that inventories remain "very clean", and expressed confidence that it will continue to gain market share profitably in 2010.
In a statement, Gregg Steinhafel, chief executive officer of Target, said, "Our January comparable-store sales were in line with our expectations, as lower clearance sales held back our year-over-year growth. We experienced strong guest traffic in January, and comparable-store sales in both our apparel and home categories were positive for the month."
Target's retail segment includes large general merchandise and food discount stores and Target.com, a fully integrated on-line business. The company also operates a credit card segment that offers branded proprietary and Visa credit cards.
Monthly Sales Results
The Minneapolis, Minnesota-based retailer, which currently operates 1,744 stores in 49 states, posted a 3.6% increase in net retail sales to $4.29 billion for the month of January.
Comparable store sales for the month, which is a key industry performance metric to measure activity at store locations open at least a year, increased 0.5% compared to a 3.3% drop in the year-ago period.
The company noted that January sales were affected by lower clearance sales, which held back year-over-year growth.
Prior-Month Performance
For the month of December, the general merchandise and food discount store operator reported better-than-expected sales figures, with both comparable store sales and net retail sales showing an upward trend compared to December last year.
Target reported that comparable store sales for the month of December was better than expected, with an increase of 1.8%. Net retail sales for the month increased 5% from the year-ago period. The company had said in early November that it was entering the holiday season with very clean inventories, and believes it was positioned to perform well amid a challenging economic environment.
Peer Performance
Among Target's peers, Issaquah, Washington-based Costco Wholesale Corp. (COST), a warehouse operator, posted January net sales of $5.62 billion, up from prior-year's sales of $5.09 billion. Comparable-store sales for the month increased 8%, with a 4% improvement in the U.S. Division and a 25% increase in the International division. The growth reflects the positive impacts from gasoline inflation and strength of foreign currencies.
Target's net retail sales for the year-to-date period edged up 0.9% to $63.44 billion from the prior-year period. Comparable store sales for the period decreased 2.5%, compared to a 2.9% decline in the same period last year.
Recent Quarter Highlights
Target is scheduled to report fourth quarter results on February 22, 2010. On average, 20 analysts polled by Thomson Reuters expect the company to report earnings of $1.15 per share on revenues of $20.15 billion for the quarter. Analyst estimates typically exclude special items.
For the third quarter, Target had reported an 18% increase in profit from last year to $436 million or $0.58 per share, helped by improved profitability in its retail and credit card businesses. Quarterly total revenues edged up 1.1% to $15.28 billion from $15.11 billion last year. Comparable store sales declined 1.6%.
Looking ahead, Target said the strong guest traffic it had in January and positive comparable store sales in both apparel and home categories, when combined with very clean inventories, position the company to continue to gain market share profitably in the challenging environment it expects in 2010.
On January 26, National Retail Federation, or NRF, released its retail industry sales projections for 2010 and said it expects retail sales to increase 2.5% from last year. According to its bi-monthly Retail Sales Outlook, influential economic indicators such as the housing market and employment are beginning to show positive signs, which will bolster consumer confidence throughout the year.
In Thursday's regular trading session, TGT is currently trading at $48.79, down $1.81 or 3.58% on a volume of 7.49 million shares. In the past 52-week period, the stock has been trading in a broad range of $25.00 to $52.46, on a average volume of 8.13 million shares.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.