37.5 F
Fort Worth
Friday, December 4, 2020
Business Target cuts forecast as holiday pain spreads to discounters

Target cuts forecast as holiday pain spreads to discounters

Other News

Left for dead, twice, RadioShack gets another shot online

SILVER SPRING, Md. (AP) — RadioShack, a fixture at the mall for decades, has been pulled from brink of death, again. It’s the most prized...

JC Penney sees bankruptcy protection exit by Christmas

NEW YORK (AP) — J.C. Penney believes it will emerge from bankruptcy protection before Christmas under a new ownership agreement that would save tens...

A look at big issues on Supreme Court’s agenda

Some of the issues either already on the Supreme Court's docket when it begins its new session or likely to be before the justices...

Petalo, not Charmin: Virus brings Mexican toilet paper to US

By JOSEPH PISANI AP Retail Writer NEW YORK (AP) — Toilet paper is back on store shelves. But you may not recognize some of the...

Target Corp. cut its fourth-quarter earnings forecast after sales were hurt by “disappointing” customer traffic, signaling that the holiday pain that rocked department-store chains took a toll on discount retailers as well.

Profit will be $1.45 to $1.55 a share in the quarter through January, the Minneapolis-based company said Wednesday in a statement. That’s down from a previous projection of $1.55 to $1.75 and misses analysts’ $1.66 average estimate.

The forecast suggests that customers’ migration online and away from brick-and-mortar locations during the holiday season hurt discount retailers, echoing themes reported earlier this month by department-store chains Macy’s and Kohl’s. Target Chief Executive Officer Brian Cornell said digital sales rose 40 percent in December but that traffic and sales trends at its stores were “disappointing.”

Comparable sales during the fourth quarter will fall 1 percent to 1.5 percent. The company had projected they’d range from a 1 percent decline to a 1 percent gain.

The shares fell 3.7 percent to $68.30 at 7:30 a.m. in early trading in New York. Target’s stock was little changed last year.

During the November-December holiday period, comparable sales slipped 1.3 percent, Target said. That was the result of a 3 percent drop at stores and digital growth of 30 percent.

Sales in what Target calls its Signature Categories, which includes toys, grew almost 3 percent faster than the company average. Sales in electronics and entertainment fell by a high-single-digit percentage, and food and essentials sales dropped by a low-single-digit rate.

Target’s forecast is another sign that the holiday sales growth reported by the National Retail Federation and other industry watchers mostly benefited online merchants. The retail trade group said spending rose 4 percent to $658.3 billion during November and December, beating the 3.6 percent gain it had projected. Nonstore sales, an indicator of online transactions, jumped 13 percent.


close






Oh hi there 👋 It’s nice to meet you.

Sign up to receive awesome content in your inbox.

We don’t spam! Read our privacy policy for more info.


close






Oh hi there 👋
It’s nice to meet you.

Sign up to receive awesome content in your inbox.

We don’t spam! Read our privacy policy for more info.

Latest News

Optimism growing for COVID relief bill as pressure builds

By ANDREW TAYLOR Associated Press WASHINGTON (AP) — Optimism about delivering long-sought COVID-19 relief is building on Capitol Hill after additional rank-and-file lawmakers voiced support...

Legendary 6666 Ranch goes on the market for $192.2M

The legendary 6666 Ranch (pronounced Four Sixes) is up for sale. Lubbock-based land brokerage and appraisal firm Chas S. Middleton and Son has listed the...

Southwest warns nearly 7,000 workers of possible furloughs

By DAVID KOENIG AP Airlines Writer DALLAS (AP) — Southwest Airlines warned nearly 7,000 workers on Thursday that they could lose their jobs unless labor...

Japan spacecraft approaches Earth to drop asteroid samples

TOKYO (AP) — Japanese space agency officials said Friday the Hayabusa2 spacecraft is on its intended trajectory as it approaches Earth to deliver a...

Hewlett Packard Enterprise to move headquarters to Texas

SPRING, Texas (AP) — Tech giant Hewlett Packard Enterprise said it is moving its global headquarters to the Houston area from California, where the...