Associated Press
- Target missed expectations for third-quarter profits and same-store sales, sending shares down as much as 12% early Tuesday.
- Kohl’s and Best Buy beat on both the top and bottom lines and raised guidance, but shares are down as Target’s results overshadow their earnings outperformance.
- Watch Target, Kohl’s and Best Buy trade live.
Target is tumbling early Tuesday, down as much as 12%, after posting weaker-than-expected earnings for the third quarter. The results, and a broader market sell-off, are outweighing strong earnings from other retailers such as Kohl’s and Best Buy amid concerns about the forthcoming holiday season.
Target reported adjusted earnings per share of $1.09, which was $0.03 lower than what analysts surveyed by Bloomberg were expecting. It generated $17.8 billion in sales versus $17.7 billion expected. Meanwhile, its same-store sales increased 5.1%, while analysts were expecting 5.2% growth.
“Our team delivered another outstanding quarter, driving comparable traffic and sales growth of more than 5 percent and earnings per share growth of more than 20 percent,” said CEO Brian Cornell in a press release.
“We’ve made significant investments in our team heading into the holidays and they are ready to serve our guests with a comprehensive suite of convenient delivery and pickup options, a wide range of new products and unique gift ideas and a strong emphasis on low prices and great value.”
Looking ahead, the company reiterated its full-year guidance and sees its adjusted earnings per share in the range of $5.3 to $5.50, while analysts were expecting $5.48.
Target’s disappointing results are overshadowing other retailers that also delivered third-quarter earnings on Tuesday. Kohl’s topped sales and profit forecasts and raised its full-year guidance, but shares tumbled as much as 12% early Tuesday. Similarly, Best Buy beat on both the top and bottom lines and lifted its outlook, but shares dropped as much as 2%.