Target Shares Fall After Posting Disappointing Q4 Results

0
8
Target Store in Oregon

U.S. retailer Target (N:TGT) reported weak fourth quarter figures on Wednesday, sending its shares plummeting in pre-market trading.  The company’s revenue came in at $21.6 billion in the fourth quarter, narrowly missing forecast of $21.68 billion.

The retailer said adjusted earnings per share is down to $1.52, missing expectations for adjusted earnings of $1.54 per share. It was, however, up 2.1% from adjusted earnings of $1.49 in the same period last year.

Comparable sales in the 4th quarter rose 1.9%, fuelled by traffic growth of 1.3%. Digital channel sales likewise grew 34%, adding 1.3% to comparable sales growth.

“With traffic growing for five consecutive quarters and our signature categories of Style, Baby, Kids, and Wellness leading our growth, Target’s results demonstrate that we are focused on the right strategic priorities,” said Target’s chairman and CEO Brian Cornell.

Immediately following the publication of Target’s weak Q4 figures, the company’s shares fell $0.77, or 1.04%, in pre-market trading dropping to $73.20 from a previous closing price of $73.97.

Meanwhile, U.S. stock futures opened significantly lower on Wednesday, with Dow futures falling 152 points, or 0.93%. The S&P 500 likewise dropped, losing 17 points, or 0.89%, while the Nasdaq 100 futures declined 53 points, or 1.27%.

LEAVE A REPLY

Please enter your comment!
Please enter your name here