Target's May comps miss forecast

Company head says sales 'driven by a much slower traffic trend'

MINNEAPOLIS — Target reported a 2.8% same-store sales increase for May, falling short of Wall Street's expectation for a 3.5% increase, as consumers remained cautious with their spending.

The retailer reported that net sales for the four-week period were $4.8 billion, an increase of 3.8% from $4.6 billion for the four weeks ended May 29, 2010.

“May sales were near the low end of our expected range, driven by a much slower traffic trend in the second half of the month,” said Gregg Steinhafel, Target chairman, president and CEO. “Our guests continue to shop cautiously in light of higher energy costs and inflationary pressures on their household budgets. As a result, we’re focused on delivering more value than ever by offering reliably low prices on high-quality, well-designed merchandise both in our stores and at Target.com.”

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