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Most retailers beat sales estimates in May
New York -- With only a few exceptions, retailers are posting solid gains in May, with such chains as Target, TJX, Ross and TJX Cos. beating Wall Street forecasts for the month. The Thomson Reuters Same-Store Index, which tracks the stores that release monthly sales reports, is expected to rise 3.6% in May.
"Analysts are taking a careful approach to May same-store sales given the cautious tone issued by most retailers on second-quarter earnings guidance," said Ken Perkins of Retail Metrics, in a research report.
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How low can it go?
The trend of improving delinquency rates within Target’s credit card portfolio just keeps getting better, and in May the percentage of customers past due on their accounts sank to another new low.
Target’s more selective granting of credit and shoppers more judicious use of their cards sent the number of accounts 60 and 90 day past due down to 2.6% and 1.8%, respectively. Those figures are represented continued improvement from comparable April numbers of 2.7% and 1.9% that also set a new low and were a marked improvement from earlier in the year.