The U.S. consumer is hitting the mark at Target. The discount retailer was one of the first to come forward and articulate concerns about the health of consumer spending in April but the big box store reported Wednesday that business overall is healthy.
The No. 2 U.S. discount chain, behind Wal-Mart Stores
Analysts, on average, were expecting 71 cents a share, according to Reuters Estimates.
Company executives reported in an earnings conference call, that the softening in consumer spending during April, was due to unseasonably cold weather that kept shoppers from buying seasonal items such as apparel and patio furniture. Spending in the month of May has helped Target put that worry to rest. Any sales weakness seems to be a seasonal product story.
Revenue from the credit card division grew 13% in the quarter to $418 million from $370 million. Target posted a 4.3% increase in same-store sales while revenue increased 9.2% to $41 million dollars in the first quarter. Target expects mid-single digit same-store sales for the year. So far, sales of electronics and consumables have been strong while other items such as movies and intimate apparel have been weaker-than-average.
Target On Economy