Target produced another month of solid same-store sales growth in July and had a lot of good things to say about its future prospects. But judging from the action in the company’s share price in the intervening days, it was as if second-quarter earnings per share had come in well short of analysts’ expectations. Target got caught up in the selling free-for-all that occurred on Friday when it appeared the United States was in for a credit rating downgrade followed by a further acceleration on Monday after the downgrade occurred.
The nation’s retailers can hope back-to-school shoppers haven’t been paying attention to the steady dose of dire economic news facing the nation the past week, but that’s pretty unlikely considering this is the information age.
Strength in the apparel category continued at Target during July, with same-store sales increasing just below the company average of 4.1%, positioning the company as a winner in a month where performance among competitors was uneven.
Costco isn’t a retailer that comes to mind for most people when it comes to back-to-school shopping, so it was peculiar to see the company’s name atop a list of the best one-stop shopping destinations.
The big relaunch of Target’s digital platform isn’t due until later this fall, but that didn’t deter the company from offering plenty of ways to interact electronically with the brand for back-to-school.