Retail

Target Lowers September Same-Store Sales Forecast

Reuters
WATCH LIVE

Discount retailer Target warned on Monday that September sales at stores open at least a year would be well below its prior forecast due to weak customer traffic, particularly in Florida and the U.S. Northeast.

Target
Rusty Kennedy

The company's shares fell 3.7% in extended trading following the announcement.

On a recorded message, Target said it expects same-store sales to rise between 1.5% and 2.5% for the five weeks ending Oct. 6.

Earlier this month, the No. 2 U.S. discount retailer after Wal-Mart, forecast September same-store sales would rise 4% to 6%.

In recent months, declining home values, high fuel costs and rising prices for groceries have led consumers to cut back on shopping and retailers, including Target and Wal-Mart have warned the second half of the year will be more difficult than the first.

Also on Monday, home improvement retailer Lowe's warned its full-year profit could trail its prior forecast, saying dry conditions in some parts of the United States were hurting sales. Lowe's has also been hurt by a slowing U.S. housing market.

Target shares fell to $61.93 in extended trading after closing at $64.30 on the New York Stock Exchange.

The company said it will report September sales results on Oct. 11.