In a report released today, Target predicted “flat sales” for its fourth quarter – unusual during the peak shopping season. In the current quarter, the retailer reported a 0.3% increase in sales.
“For the fourth quarter, the Company expects approximately flat comparable sales and GAAP and Adjusted EPS of $1.85 to $2.45, translating to a full year expected GAAP and Adjusted EPS range of $8.30 to $8.90.” Target reported today.
The company reported small gains during Q3:
Sales increased 0.3 percent, driven by strong traffic and digital performance.
Guest traffic grew 2.4 percent over the prior year.
Digital comparable sales grew 10.8 percent, reflecting nearly 20 percent growth in same-day delivery.
However, the third-quarter GAAP and Adjusted earnings per share (EPS) were reported lower, at $1.85, compared with $2.10 in 2023.
Brian Cornell, Chair and CEO of Target, said, “I’m proud of our team’s efforts to navigate through a volatile operating environment during the third quarter. We saw several strengths across the business, including a 2.4 percent increase in traffic, nearly 11 percent growth in the digital channel, and continued growth in beauty and frequency categories. At the same time, we encountered some unique challenges and cost pressures that impacted our bottom-line performance.”
The CEO said, looking ahead, “our team is energized and ready to deliver the unique combination of newness and value that holiday shoppers can only find at Target. We remain confident in the underlying strength and fundamentals of our business and our ability to deliver on our longer-term financial goals.”
Retail experts believe that Target has faced greater challenges than its competitors, such as Walmart, which reported an increase in its yearly projections yesterday. This is primarily due to at least 50% of Target’s stock being categorized as “non-essential” items.
Target shares lost 20% in pre-market trading today.
By CEO NA Editorial Staff
