The Target logo is seen on its store on forty second Street in Times Square, Latest York City.
Deb Cohn-Orbach | UCG | Universal Images Group | Getty Images
Target will report its holiday-quarter results and year-ahead outlook on Tuesday.
Here’s what Wall Street analysts surveyed by LSEG, formerly generally known as Refinitiv, expect for the corporate’s fourth quarter:
- Earnings per share: $2.41 expected
- Revenue: $31.83 billion expected
Target, which sells numerous discretionary merchandise similar to clothing and residential goods, has posted declining comparable sales for 2 quarters in a row. The industry metric, also called same-store sales, takes out the effect of store openings, closures and renovations.
The corporate previously said it anticipated that trend would proceed, even in the course of the holiday season. It said in November that it expected comparable sales to drop by across the mid-single-digits within the fiscal fourth quarter and adjusted earnings per share to range between $1.90 and $2.60.
To draw value-focused shoppers, the low cost chic retailer has stressed low prices and higher-frequency categories, similar to food and wonder. Over the vacation season, for instance, the corporate emphasized a large assortment of toys and gifts for under $25. Last month, it launched a latest low-priced private brand called Dealworthy, including items similar to socks, paper towels, laundry detergent and more, with most items costing under $10.
Compared with big-box rival Walmart, Target has faced one other challenge: Groceries make up a smaller a part of its business. The category draws foot traffic and steadier sales, whilst shoppers in the reduction of in other areas. Grocery drives about 20% of Target’s annual sales compared with nearly 60% of Walmart’s annual sales within the U.S.
A few of Target’s stores are also losing a separate traffic driver: pharmacies. CVS Health said in January that it will close some locations in Target stores, as a part of a broader plan by CVS to cut back its store count. CVS and Target declined to say how lots of the pharmacies could be shuttered.
Target will hold a financial meeting with investors on Tuesday in Latest York City.
As of Monday’s close, Target’s shares are up nearly 6% up to now this 12 months. That falls wanting the roughly 8% gains of the S&P 500 in the course of the same period. Target’s shares closed on Monday at $150.49 apiece, bringing the corporate’s market value to just about $70 billion.
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