A Target department store in North Miami Beach, Florida, on May 17, 2023.
Joe Raedle | Getty Images
Target will report fiscal third-quarter earnings on Wednesday, as the corporate tries to claw its way back from a string of disappointing results and high-profile setbacks.
Investors will listen for any signs that the retailer’s sales are turning around as Target gets ready for the crucial holiday season.
Here’s what Wall Street expects for the corporate for the three-month period, based on a survey of analysts by LSEG, formerly often known as Refinitiv:
- Earnings per share: $1.48 expected
- Revenue: $25.24 billion expected
Sales have slowed across the retail industry as consumers feel pain from elevated prices and decide to spend on experiences as a substitute. Yet Target, which sells a heavier mixture of clothing, home goods and impulse purchases than some rivals, has been particularly squeezed.
Plus, it has faced its own challenges. Target got blowback for a set of merchandise for Pride month, a celebration of LGBTQ+ people and issues, that it has sold for greater than a decade. It got hit by higher levels of organized retail crime. And it recently shuttered nine stores in major cities, blaming the closures on theft and threats of violence.
The Minneapolis-based company cut its full-year forecast in August, saying it expects comparable sales to say no by a few mid-single-digit percentage and earnings per share to range from $7 to $8.
Target’s stock has suffered as sales stagnate. Shares of the corporate have fallen nearly 26% this yr, with their value cut by greater than half because the highs of the Covid pandemic.
![Target CEO Brian Cornell: Shoppers are pulling back, even on groceries](https://image.cnbcfm.com/api/v1/image/107327641-16989266701698926666-31851735096-1080pnbcnews.jpg?v=1698926669&w=750&h=422&vtcrop=y)
In a CNBC interview with Becky Quick that aired earlier this month, Target CEO Brian Cornell said the corporate’s sales of discretionary goods have declined seven consecutive quarters, when it comes to each dollars and units. He said shoppers are buying less clothing and toys, and even fewer groceries.
But he sounded a positive note concerning the key holiday season. He said the corporate has seen sales pop around “seasonal moments,” reminiscent of Halloween, Mother’s Day and summer holidays — a dynamic that might help as Black Friday, Thanksgiving and Christmas approach.
Home Depot‘s quarterly report Tuesday gave cause for optimism, too. The house improvement retailer predicted year-over-year sales declines, nevertheless it said the worst of inflation is over.