Target said it will report a spike in sales the first time in five quarters sending its shares up and pushing retail stocks higher in early trading. Elly Park reports.
Target said it expects a "modest" increase in second-quarter same-store sales, a first in five quarters. Behind the raise - increased store traffic and sales trends. The upbeat forecast sent Target's stock up. Other retailers followed, including Macy's, Kohl's, and Wal-Mart. Quo Vadis Capital analyst John Zolidis said in a note: "A return to positive comps in the second quarter after four quarters of declines is clearly a good sign. At a minimum, it indicates that traditional retailers are not following a straight line directly to irrelevance." Target also said its sees second-quarter profit coming in above estimates. The company will report second-quarter earnings on August 16.