A sales surprise in store this week

Sales results for April are due out this week, and given the improving state of consumer confidence aided by improvement in the stock market, there is a very real prospect that Target will exceed guidance of flat same-store sales. The company made that forecast in early April after it reported a 6.3% declined that was better than analysts expected. A lot has changed during the past month, and favorable spring time weather combined with a sense that the economy won’t get any worse were favorable developments for consumer spending. When combined with Target’s effective promotional emphasis on food and consumables and the inclusion of Easter seasonal sales, it would be surprising if April results didn’t register an increase. In fact, it would probably be considered a major disappointment, as the recent run up in the company’s share price suggest investors are betting on improved results after a declining same-store sales trend that began last summer.