Target Misses Forecast for December Sales

Target Corp., the second-largest U.S. discount retailer, said a late surge in demand by holiday shoppers failed to lift sales gains to the company’s forecast for an increase of 4% to 6% in December.

Sales at stores open at least a year were higher than expected in the week ended Saturday compared with a year earlier, Minneapolis-based Target said.

A rush by last-minute shoppers and bargain hunters failed to make up for sales lost earlier in the month because of snowstorms. Customers snatched up DVDs, compact discs and pharmacy items, while sales of clothing and home decor were weak. Target sold more gift cards, which aren’t counted as revenue until they are redeemed.

Shares of Target rose 93 cents to $38.65on the New York Stock Exchange.