U.S. Markets closed

Target Trades Lower On Weak Holiday Sales Data, Maintains Q4 Guidance

Tanzeel Akhtar

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. 

View more earnings on TGT

“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

Related Links:

Target Reports Q3 Earnings Beat, Raises Guidance

Target Reports Q2 Earnings Beat, Raises Guidance

Photo by Mike Kalasnik via Wikimedia

0

See more from Benzinga

© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.