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Target Sales Up 9.2 Percent in Aug.

MINNEAPOLIS -- Net retail sales for Target Corp. here rose 9.2 percent to $4.2 billion during the four weeks ended August 26, 2006, compared to August 2005, driven by an increase in the average amount of merchandise purchased, particularly in perishables, pharmacy, newborn, infant and toddler items, and toys.

"Our sales in the month of August were in line with our expectations," said Bob Ulrich, Target's chairman and chief executive.

While the discounter's same store sales increased 2.8 percent, analysts, on average, expected its August same store sales to hit 3.1 percent. Target pointed to weaker performance in women's clothing, accessories, and jewelry, as well as "essentially flat" store traffic. Target also missed Wall Street's sales estimates in July.

Geographically, the South and the West Coast were August's strongest regions for Target, which called its inventory in "very good condition." For September, Target forecasted a 3 percent to 5 percent same-store sales gain.

Target operates 1,444 stores in 47 states.
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