Target (TGT.US) Falls Over 19% As It Lowers Full-Year Earnings Expectations

Market IntelWednesday, Nov 20, 2024 9:50 am ET

1min read

Target (TGT.US) shares fell on Wednesday, down more than 19% at the time of writing to $125.14. The company cut its full-year profit forecast and warned that weaker sales and increased inventory hurt profitability. It now expects full-year EPS of $8.30-$8.90, below the previous forecast of $9-$9.70.Target's Q3 revenue was US$26.57bn, up 1.1% YoY, missing market expectations; Non-GAAP EPS was US$1.85, missing market expectations.Comparable sales only grew 0.3% in Q3, missing analyst expectations, and slowed from the previous quarter. Specifically, comparable sales at stores fell 1.9%, while digital comparable sales grew nearly 11%. Higher fulfillment costs from increased online sales also hurt operating margins.Target's comparable sales growth slowed in Q3, with comparable sales at stores down 1.9% and digital comparable sales up nearly 11%. Higher fulfillment costs from increased online sales also hurt operating margins.

Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.