Target tumbles 13% after missing on earnings and guidance

Target lg tv carrying black friday
Shoppers put a television into a basket that was part of ‘Black Friday’ deals at a Target on November 24, 2016 in Orem, Utah. George Frey/Getty

Shares of Target are down 13.5% at ahead of the opening bell after the big-box retailer missed on earnings and guidance. The company said it earned an adjusted $US1.45 per share on revenue of $US20.69 billion. While adjusted EPS was shy of the $US1.51 that was expected by the Wall Street consensus, revenue was in line.

“Our fourth quarter results reflect the impact of rapidly-changing consumer behaviour, which drove very strong digital growth but unexpected softness in our stores,” Brian Cornell, chairman and CEO of Target, said in a statement accompanying the results.

As for comparable same-store sales, Target reported a drop of 1.5%, missing the -1.3% Wall Street estimate. Target says it sees comparable sales declining by low single digits for the full year.

Additionally, guidance accompanying the report was light with the company saying its sees first quarter adjusted EPS of $US0.80 to $US1.00, which was well below the $US1.33 that was expected. For the full year, its adjusted EPS guidance of $US3.80 to $US4.20 missed the $US5.34 that analysts were anticipating.

Tuesday’s selling has shares of Target at their lowest level since late 2014.

Target

NOW WATCH: What happens when you eat too much protein