Target Trades Lower On Weak Holiday Sales Data, Maintains Q4 Guidance
Target Corporation (NYSE: TGT) shares were trading lower Wednesday after the retailer reported holiday sales that failed to meet expectations.
Comparable sales in the combined November and December period grew 1.4% versus 5.7% growth in the same period last year.
Comparable digital sales grew 19% in the November and December period, driven primarily by the company's same-day fulfillment services, which together grew more than 50% from the comparable period last year, according to Target.
Target maintained its previous guidance for fourth-quarter earnings per share of $1.54-$1.74 against a $1.70 estimate and fiscal year 2019 adjusted EPS guidance of $6.25-$6.45.
“We faced challenges throughout November and December in key seasonal merchandise categories and our holiday sales did not meet our expectations,” CEO Brian Cornell said in a statement.
“However, because of the durability of our business model, we are maintaining our guidance for our fourth quarter earnings per share. We also remain on track to deliver historically strong full-year results in 2019, including comparable sales growth of more than 3% and record-high EPS reflecting mid-teens growth compared with last year.”
Target shares were trading down 7.87% at $115.40 at the time of publication during Wednesday's premarket session. The stock has a 52-week high of $130.24 and a 52-week low of $67.17
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