Target, Gap Sink on Disappointing Sales

Retailers came out with April same-store sales results on Thursday, with some major retailers missing analysts’ expectations.

In particular, Target (TGT) said same store sales grew 1.1%, below expectations for 2.8%.

Gap (GPS) saw sales fall 2%, worse than expectations for a 0.8% drop.

Target slid 2.5% and Gap was off 1.6%.

On the other hand, both TJX (TJX) and Ross Stores (ROST) both raised their earnings guidance after posting better than expected sales.

In general, retail sales were subdued in April; of the 20 companies that reported, saw sales rise 0.8% below expectations for 1.5% growth, according to Thomson Reuters. But the shortfall can be explained by shifts in the timing of Easter and Mother’s day. A better ay to determine sales strength is to come up with an average based on Mach and April results, Thomson Reuters noted:

“On that basis, retailers posted a 2.5% gain in same-store sales for that two-month period, a sharp drop from the 5.4% growth seen in the same period for last year. Excluding the Drug Stores group from the mix, however, makes the picture somewhat brighter: the forecast growth in the index rises to 4.5%, a drop from the 6.4% growth recorded a year earlier.”