Target and TJX beats analyst expectations in May, Costco disappoints
New York City Target Corp. said same-store sales rose 1.3% in May as consumers came to the cash register more but spent less on each trip. The results fell short of the company’s own expectations but inched above analyst expectations of a 1.2% gain, according to a survey by Thomson Reuters.
Total sales for the period rose 4% to $4.62 billion. Year-to-date, same-store sales were up 2.5%, while total sales increased 5% to $19.78 billion.
CEO Gregg Steinhafel said in a statement he expects the company “will continue to experience volatility in the pace of economic recovery.”
Target said grocery, healthcare and beauty products were strong sellers, while electronics were weaker. California and Arizona were the weakest regions.
TJX Cos. said Thursday that its same-store sales rose 4% in May, topping forecasts for a 2.7% increase.
The owner of T.J. Maxx, Marshalls and HomeGoods said overall revenue for the month rose 8% to $1.6 billion. Results were strongest in the Northeast.
Ross Stores also turned in a strong performance in May, as same-store sales jumped 5%, ahead of the forecast of 4%. The discounter said total sales rose 9% to $614 million for the four weeks ended May 29.
Costco Wholesale Corp. reported a 9% gain for in same-store sales for May, below the 9.7% increase analysts polled by Thomson Reuters had expected. The company noted that the Memorial Day holiday fell in the reporting month of May last year but not this year.
For the four weeks ended May 30, same-store sales rose 7% in the United States and 17% internationally. Excluding gas price inflation and the weaker dollar, revenue in stores open at least one year rose 5%.
Total sales for the period rose 11% to $6.09 billion, from $5.47 billion last year.
At BJ’s Wholesale Club, May revenue improved on strong gasoline sales. The warehouse club operator’s same-store sales rose 6.8%, better than the 6.6% gain expected by analysts.
However, excluding revenue from gasoline sales the measure climbed just 3.5%, missing the 4% jump on that basis that analysts had expected.
Overall revenue for the month rose 11.3% to $871.9 million. Sales of food rose by 6%, while customers bought slightly less general merchandise.
Other same-store sales results include:
- Fred’s said its sales climbed 3.5%, better than the 2.7% increase forecast by analysts. Revenue in May was up 5% to $141.5 million.
Macy’s celebrates Pride month
NEW YORK Macy’s announced that it has celebrating Pride month with a multitude of in-store fashion events, advertising support, special tribute windows in select stores, gift registry booths for same-sex couples in key cities, as well as sponsorship and employee participation in Pride parades across the country.
“We are proud to support our LGBTQ employees and consumers through initiatives that recognize and honor our commitment to diversity and inclusion,” said Corliss Fong, Macy’s vice president of diversity strategies. “Macy’s remains a steadfast supporter of inclusiveness in all aspects of our business and we join in celebration with millions across the nation who live with pride and joy this June.”
GameStop announces exec promotions
GRAPEVINE, Texas GameStop has announced the promotion of existing executives into new positions within the company.
The promotions include: Daniel DeMatteo, executive chairman, from CEO; J. Paul Raines, CEO, from COO; Tony Bartel, president, from EVP merchandising and marketing; and Robert Lloyd, EVP and CFO, from SVP and acting interim CFO.
“I am pleased to congratulate the team along with our board on the execution of this succession plan that has been two years in the making,” indicated Dan DeMatteo. “Paul, Tony, Rob and Mike are filling key positions that will allow GameStop to continue its growth both here and internationally. This includes expansion into new markets and continued focus on strategic initiatives such as our new loyalty program, downloadable content (DLC) marketing and sales, and the evolution of GameStop.com into a robust digital platform.”