The Target logo is seen on its store on 42nd Street in Times Square, New 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 known as Refinitiv, are expecting for the company’s fourth quarter:
- Earnings per share: $2.41 expected
- Revenue: $31.83 billion expected
Target, which sells a lot of discretionary merchandise such as clothing and home goods, has posted declining comparable sales for two quarters in a row. The industry metric, also called same-store sales, takes out the effect of store openings, closures and renovations.┬а
The company previously said it anticipated that trend would continue, even during the holiday season. It said in November that it expected comparable sales to drop by around the mid-single-digits in the fiscal fourth quarter and adjusted earnings per share to range between $1.90 and $2.60.
To attract value-focused shoppers, the cheap chic retailer has stressed low prices and higher-frequency categories, such as food and beauty. Over the holiday season, for example, the company emphasized a wide assortment of toys and gifts for under $25. Last month, it launched a new low-priced private brand called Dealworthy, including items such as socks, paper towels, laundry detergent and more, with most items costing under $10.
Compared with big-box rival Walmart, Target has faced another challenge: Groceries make up a smaller part of its business. The category draws foot traffic and steadier sales, even as shoppers cut back in other areas. Grocery drives about 20% of Target’s annual sales compared with nearly 60% of Walmart’s annual sales in the U.S.
Some of Target’s stores are also losing a separate traffic driver: pharmacies. CVS Health said in January that it would close some locations in Target stores, as part of a broader plan by CVS to reduce its store count. CVS and Target declined to say how many of the pharmacies would be shuttered.
Target will hold a financial meeting with investors on Tuesday in New York City.
As of Monday’s close, Target’s shares are up nearly 6% so far this year. That falls short of the approximately 8% gains of the S&P 500 during the same period. Target’s shares closed on Monday at $150.49 apiece, bringing the company’s market value to nearly $70 billion.
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