The comments on reported results in this summary relate to Target Corporation sales for the five-week period ended October 3, 2009, compared to the five-week period ended October 4, 2008. These sales results are included in the table of our sales release issued on October 8, 2009.
For the fiscal September period, reported comparable store sales decreased 1.7%. This decline was discount tiffany by a decrease in average transaction size, partially offset by an increase in comparable store transactions. Comparable store sales in September 2008 decreased 3.0%.
The current month’s sales release quotes Gregg Steinhafel, Chairman, President and Chief Executive Officer of Target Corporation, as saying, “Sales for the month of September exceeded our expectations as the trend in our comparable transactions continued to improve. As a result of stronger than expected retail segment EBIT margin, combined with this improved sales trend, we expect our third-quarter EPS performance to exceed the current median First Call estimate of $0.43.”
“In addition, we continue to experience credit card segment results in line with our expectations. While our outlook for the third quarter has improved, we remain cautious in our expectations for fourth-quarter results in both of our business segments.” Earnings per share figures refer to diluted earnings-per-share.
Within our merchandise assortment, sales performance in commodity categories continued to be strong led by healthcare, household, personal, baby and beauty which experienced comparable store sales increases from the low single digits to the low double digits. Comparable store sales in food were essentially flat as retail price declines offset continued strength in unit sales.
September comparable store sales results in hardlines categories were slightly below company performance with stronger than average performance in electronics and weaker than average performance in entertainment. Comparable store sales performance in apparel was slightly better than the Company overall led by intimate, hosiery, performance, jewelry, accessories and shoes, each of which experienced comparable store sales increases and weaker than average in newborn, infant, toddler and women’s apparel. Comparable store sales in home were down in the high single digit range with stronger performance in decorative home and weaker performance in domestics.
September comparable store sales performance was better than average in Northern California and a tiffany jewelry sale set of Northeast and mid-Atlantic states. Comparable store sales performance was weaker than the rest of the chain in Texas, Southern California and Florida. At month end, our inventory was in very good condition. For the month of October, our comparable store sales results will compare the four weeks ended October 31, 2009, to the four weeks ended November 1, 2008. We expect comparable store sales in this period to decline in the low single digit range.
Target’s current sales disclosure practice includes a sales recording on the day of our monthly sales release. Our next sales recording is expected to be issued on Thursday, November 5, 2009, and may be accessed by calling 612-761-6500.
The statements on expected sales and EPS performance are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements speak only as of the date they are made and are subject to risks and uncertainties which could cause the Company’s actual results to differ materially. The most important risks and uncertainties are described in item 1A of the Company’s Form 10-K for the fiscal year ended January 31, 2009.
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