Target forecasts rise in second-quarter comparable sales, higher profit

[July 13, 2017]  (Reuters) - Target Corp  said on Thursday it expects a "modest" increase in second-quarter comparable sales, the first rise in five quarters, helped by improved traffic and sales trends in the first two months of the quarter ending July.
 

A newly constructed Target store is shown in San Diego, California, U.S. May 17, 2016. REUTERS/Mike Blake/File Photo

The retailer had previously forecast a low single-digit decline in comparable sales.

Target also said on Thursday it expects second-quarter profit to come in above its forecast range of $0.95 to $1.15 per share, also helped by a net tax effect related to its global sourcing operations.

The retailer's shares were up 5.4 percent at $53.61 in premarket trading.

Department store operator J.C. Penney Co Inc <JCP.N> also said this week it was expecting second-quarter sales to significantly improve from the first quarter.

Target also said it was pleased with initial results from Target Restock, a next-day home delivery service it is testing in Minneapolis-Saint Paul.

Target will report second-quarter results on Aug. 16.

(Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Sriraj Kalluvila and Shounak Dasgupta)

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