Target retail sales came in above expectations

Target retail sales came in above expectations

US retailer Target Corp. saw its earnings increase in its fiscal first quarter, boosted by retail sales that came in above expectations.

Net earnings for the quarter ended 1 May reached US$671m compared to $522m in the prior year period.

Sales increased 5.5% to reach $15.2bn due to a 2.8% increase in comparable-store sales and the contribution from new stores.

“We’re very pleased with our first quarter financial results, which were the result of disciplined execution by our teams in a stronger-than-expected economic environment,” said Gregg Steinhafel, chairman, president and CEO of Target Corp. said.

“Our retail segment delivered results well above our expectations, as sales of higher-margin discretionary items were particularly strong,” he added.

Going forward, the retailer said it will continue its “relentless focus” on low prices.