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.