Target posts small June same-store sales rise

NEW YORK (Reuters) - Target Corp on Thursday reported a 0.4 percent rise in June sales at stores open at least a year, instead of the decline analysts had expected, after shoppers headed to the discount retailer's stores for food and other necessities.

Analysts on average had forecast a fall of 0.5 percent, according to Thomson Reuters Estimates, while Target had expected same-store sales to be flat to down 2 percent.

Sales for the five weeks ended July 5 rose 6.6 percent to $5.84 billion.

On a recorded call, Target said sales of consumable and commodity items -- which include merchandise like food, household cleaners and shampoo -- outpaced discretionary merchandise like home decor and clothing.

The company said same-store sales of apparel were essentially flat, the category's best monthly performance in more than six months, led by sales of women's and children's clothes.

But Target's decorative home and garden business continued to struggle, with same-store sales falling at a double-digit percentage rate.

For July, the company forecast same-store sales to be down 1 percent to up 1 percent, compared with a year-earlier rise of 6.1 percent.

(Reporting by Nicole Maestri; Editing by Lisa Von Ahn)