Shares decline on sales outlook

Shares of Target Corp., the second-largest U.S. discount chain, fell after the company said it was planning for a modest decrease in fourth-quarter comparable-store sales.

“We haven’t seen that rebound or that lift yet,” Chief Executive Gregg Steinhafel said.

The Minneapolis company said average transaction sizes were smaller at the start of November, although shopper visits increased.

Net income at Target advanced 18% to $436 million, or 58 cents a share, in the third quarter ended Oct. 31, from $369 million, or 49 cents, a year earlier. Analysts anticipated earnings of 50 cents a share, based on a Bloomberg survey.

Revenue increased 1.1% to $15.3 billion in the quarter. Sales at stores open at least a year, a key measure of retail health known as comparable store sales, declined 1.6%, in line with figures that Target provided Nov. 5.

Target shares fell $1.52, or 3%, to $48.77.