Target Issues Profit Warning on Disappointing Holiday Sales
January 18 2017 - 8:03AM
Dow Jones News
By Anne Steele
Target Corp. posted softer-than-expected comparable sales during
the holiday season and cut its guidance for the fourth quarter and
year, the latest retailer to post a disappointing end to 2016.
During the November and December period, same-store sales fell
1.3%.
"While we were pleased with Black Friday sales, December digital
sales growth of more than 40% and continued strength in our
signature categories, these results were offset by early season
sales softness and disappointing traffic and sales trends in our
stores," said Chief Executive Brian Cornell.
Target's stock fell 4.8% premarket to $67.52.
Total sales declined 4.9%, hurt by comparisons to a year-earlier
period that included revenue from Target's pharmacy and clinic
businesses, which it sold in December 2015.
Target now anticipates fourth-quarter comparable sales to
decline between 1% and 1.5%, compared with prior guidance of
between down 1% and up 1%. Adjusted earnings are expected between
$1.45 and $1.55 a share, compared with prior guidance of $1.55 to
$1.75 a share.
For 2016, Target now expects to report adjusted earnings of $5
to $5.10 a share, compared with prior guidance of $5.10 to $5.30 a
share, reflecting 44 cents a share of early debt-retirement losses
and a 1-cent per-share benefit from the resolution of income tax
matters.
The company is slated to release its full fourth-quarter results
Feb. 28.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
January 18, 2017 07:48 ET (12:48 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
Target (NYSE:TGT)
Historical Stock Chart
From Aug 2024 to Sep 2024
Target (NYSE:TGT)
Historical Stock Chart
From Sep 2023 to Sep 2024