Target (TGT) Shares Fall On Weak Christmas Sales, Lower Guidance
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Price: $158.25 -0.47%
Financial Fact:
Diluted earnings per share (in dollars per share): 1.06
Today's EPS Names:
EDXC, BICX, FBPI, More
Financial Fact:
Diluted earnings per share (in dollars per share): 1.06
Today's EPS Names:
EDXC, BICX, FBPI, More
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Shares of Target (NYSE: TGT) are under heavy pressure early Thursday following disappointing December retail sales and profit guidance.
The retailing giant said December comparable-store sales increased just 1.6 percent, which was well below the 3.1 percent rise analyst had expected.
"December sales were below our expectations as growth in Grocery and Beauty offset softness in Electronics and Music, Movies & Books," said Gregg Steinhafel, chairman, president and chief executive officer of Target Corporation.
"Sales and traffic were strongest in the week leading up to Christmas as guests waited to shop for last-minute gifts. In 2012, we’ll continue to pursue initiatives designed to deliver compelling value and a superior shopping experience against the backdrop of continued slow and volatile economic growth," he also said.
Due to the softer-than-expected holiday season sales, the company currently expects fourth quarter 2011 diluted EPS of $1.35 to $1.43, compared with prior guidance of $1.43 to $1.53. Wall Street was looking for EPS of $1.48.
Target sees January same-store sames up low-to-mid single digits.
Shares of Target are down 4 percent in pre-open trading Thursday to $48.
The retailing giant said December comparable-store sales increased just 1.6 percent, which was well below the 3.1 percent rise analyst had expected.
"December sales were below our expectations as growth in Grocery and Beauty offset softness in Electronics and Music, Movies & Books," said Gregg Steinhafel, chairman, president and chief executive officer of Target Corporation.
"Sales and traffic were strongest in the week leading up to Christmas as guests waited to shop for last-minute gifts. In 2012, we’ll continue to pursue initiatives designed to deliver compelling value and a superior shopping experience against the backdrop of continued slow and volatile economic growth," he also said.
Due to the softer-than-expected holiday season sales, the company currently expects fourth quarter 2011 diluted EPS of $1.35 to $1.43, compared with prior guidance of $1.43 to $1.53. Wall Street was looking for EPS of $1.48.
Target sees January same-store sames up low-to-mid single digits.
Shares of Target are down 4 percent in pre-open trading Thursday to $48.
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