Target's October sales rise, but miss estimates

AP News
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Posted: Nov 03, 2011 8:42 AM
Target's October sales rise, but miss estimates

Target Corp. said Thursday that revenue at stores open at least a year climbed 3.3 percent in October, below analysts' estimates of 4.2 percent.

Still, that was better than the 1.7 percent increase in the same period a year ago. CEO Gregg Steinhafel said he was pleased with the results and that his store is "more relevant than ever in these challenging economic times."

Target said that an increase in the average size of each transaction offset a slight decline in the number of transactions, meaning customers visited stores less often but spent more when they did. Customers loaded up on essentials, with food and household products performing the best. There were softer sales for non-necessities like jewelry and home decor.

Revenue at stores open at least a year is a key measure of a company's health because it excludes the impact of recently opened or closed stores. Overall revenue, which does include that measure, rose 4.3 percent in October to $4.84 million.