Thursday, Target Corp. (TGT), an operator of general merchandise and food discount stores, reported a 1.2% decline in comparable store sales for the month of July. However, the company's total sales for the month were up 4.7%.
For the year-ago month, Target had reported comparable store sales growth of 6.1%. The company's net retail sales for July increased to $4.57 billion from $4.36 billion last year.
According to Target's Chief Executive Officer Gregg Steinhafel, the company's comparable store sales performance in July was near the low end of its -1% to +1% planned range.
For the month of June, Target reported a 0.4% increase in comparable store sales. Net retail sales for the period increased 6.6% to $5.84 billion
For the quarter-to-date period, the company's comparable store sales dropped 0.4%, whereas it rose 4.9% in the prior-year period. Total sales increased 5.7% to $14.97 million.
The company also reported a 0.6% decline in year-to-date comparable store sales in comparison with a 4.6% rise in the previous year. Sales reached $29.27 million, up 5.3% from the same period last year.
Target's retail segment includes large, general merchandise and food discount stores, and on-line business called Target.com. In addition, the company operates a credit card segment that offers branded proprietary and Visa credit card products. The company currently operates 1,648 Target stores in 47 states.
Among Target's competitors, Wal-Mart Stores, Inc. (WMT) said Thursday that sales at established locations in the month of July increased 3% from last year, excluding the impact of fuel sales. Including the impact of fuel, U.S. comparable store sales increased 3.7%. The company had expected U.S. comparable store sales for the month to increase between 2% and 4%, excluding the impact of fuel.
Wal-Mart's net sales for the month increased 9.4% to $30.16 billion from $27.58 billion in the same period last year.
Meanwhile, warehouse operator Costco Wholesale Corp. (COST) has recently reported a 10% increase in comparable store sales for the month of July, benefited primarily by the gasoline price inflation and favorable exchange rates. Net sales for the month increased 14% to $5.70 billion from $5.02 billion in the previous year four-week period.
Target is scheduled to announce its second-quarter results on August 19. Wall Street analysts forecast earnings of $0.76 pr share on sales of $15.49 billion.
In a client note published on July 23, Credit Suisse analyst Exstein downgraded Target shares to Neutral from Outperform and lowered its price target to $50 from $60. The brokerage also reduced its 2008 earnings per share estimate to $3.30 from $3.45. The downgrading was based on the continued deterioration of the company's credit business.
TGT is trading at $46.224, down $1.77, on a volume of 2.33 million shares.
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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.