(Stock price added at the close.)
preliminary second-quarter same-store sales results is any indication, the discounter is in for a rough earnings report on Tuesday.
The company saw comparable sales sink 6.2%, a figure at the low end of management's guidance for a low-to-mid single digit decline.
While Target showed some strength in food, consumables and healthcare, it continued to experience high-single- to low-double-digit declines in apparel and home, Deborah Weinswig, analyst at Citi, wrote in a research note.
Notably, Target continues to lose out to department store
. Target has comped worse than Kohl's in five of the first seven months of the year despite Kohl's more discretionary mix, Weinswig wrote.
In addition, traffic at Target has been negative for the 18 of the past 20 months.
, but saw sales climb 2% due to its compelling private label and exclusive merchandise. The company also upped its full-year forecast.
Weinswig forecasts Target's earnings at 69 cents, above Wall Street's average of 66 cents and higher than managements guidance of 64 cents.
When the company released its June sales it also raised its guidance, citing better gross margin rate, continued expense discipline and modestly improving risk trends in credit segment.
Shares of Target closed down 1.5% to $41.38, but was rallying 0.5% in after-market trading.
, but saw a slight decline in sales.
-- Reported by Jeanine Poggi in New York.
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