Things have gone from bad to worse at
The discount chain said on a recorded call late Monday that June sales are currently trending "well below plan" at its flagship outlets, reflecting poor sales of shoes, electronics and children's clothes. The warning ups the ante from Target's prediction a week earlier that June sales could be at the low end of guidance, which had been for a same-store sales increase of 5% to 7%.
The comments come on the heels of a similar warning by rival
, which Monday said June same-store sales would rise roughly 2% to 4% from a year ago, down from its previous growth estimate of 4% to 8%.
Wal-Mart blamed a weak Father's Day holiday and cool weather that depressed air conditioner sales. Analysts further speculated
that the discount space could be suffering as flush consumers blow more money on luxury goods, and said the retailer was having trouble wringing much momentum out of its grocery business.
On Instinet, Target was recently down 84 cents, or 1.9%, to $43.20.