NEW YORK – March’s gain is turning out to be April’s loss.
Target Corp on Monday said that its April revenues will be “much weaker” than its initial plan of a decrease of 2% to 4% in same-store sales.
Target based its revised projection on sales during the first two weeks of April and its expectations for the final two weeks of the month.
“For the March/April period combined, we now expect comparable-store sales to increase in the range of 3 to 4%, slightly below our previous 4 to 6% outlook, and we expect comparable-store sales for the first quarter to increase about 4%,” the company said in a recorded announcement.
Target met its March sales projection, finishing the month with a 12% gain in comps after projecting growth of 11% to 13%. For Target and other retailers on the National Retail Federation’s 4-5-4 calendar, March results were generally aided by the early timing of Easter. Final results for April will in many cases be deprived of holiday-related sales.
Target, however, said it remained “comfortable” with earlier earnings projections for the first quarter, which ends at the beginning of May.
Target and other major US retailers will report April results on May 10. The retail month ends on May 5.
Target issued its statements after the close of the US equity markets on Monday.