The Target logo is seen in its store on 42nd Street in Times Square in New York City.
Deb Cohn Orbach | UCG | Universal Images Group | Getty Images
Goal will report its holiday quarter results and outlook for the coming year on Tuesday.
Here’s what Wall Street analysts surveyed by LSEG, formerly known as Refinitiv, expect for the company’s fourth quarter:
- Earnings per share: $2.41 expected
- Revenue: $31.83 billion expected
Target, which sells many necessities such as clothing and home goods, posted two straight quarters of declining comparable sales. The industry metric, also known as same-store sales, takes into account the impact of store openings, closings and renovations.
The company previously said it expects this trend to continue during the holiday season. In November, it said it expected a mid-single-digit decline in comparable sales for the fiscal fourth quarter and adjusted earnings per share of between $1.90 and $2.60.
To attract value-oriented shoppers, the budget-chic retailer has emphasized low prices and higher-traffic categories like grocery and beauty. For example, during the holiday season, the company emphasized a wide range of toys and gifts under $25. Last month, the company launched a new low-priced private label called Dealworthy, which includes items like socks, paper towels, laundry detergent and more, with most items costing less than $10.
Compared to the big competitor Walmart, Target faces another challenge: Groceries make up a smaller portion of its business. The category attracts foot traffic and provides more stable sales even as shoppers decline in other areas. Grocery accounts for about 20% of Target’s annual sales, compared to nearly 60% of Walmart’s annual sales in the United States
Some Target stores are also losing a separate traffic driver: pharmacies. CVS Health announced in January that it would close some locations within Target stores as part of a broader plan by CVS to reduce its store count. CVS and Target declined to say how many pharmacies would close.
Target will hold a financial meeting with investors on Tuesday in New York City.
As of Monday’s close, shares of Target were up nearly 6% so far this year. That’s below the S&P 500’s roughly 8% gains over the same period. Target’s shares closed at $150.49 apiece on Monday, pushing the company’s market value to nearly $70 billion.
This is breaking news. Please check back for updates.
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2024-03-05 05:01:01
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