Target slides after disappointing holiday guidance

  • Target reported earnings and sales that topped estimates in the third quarter.
  • It raised its guidance for the full year, but issued a lower profit forecast for the holiday season.
  • Target shares slide after the news.
  • To see Target’s stock price, click here.

Target‘s shares slid in pre-market trading after the retailer issued an underwhelming profit forecast for the holiday season.

The company sees earnings of $US1.05 to $US1.25 per share in the fourth quarter, below the Wall Street estimate of $US1.24. Its shares fell more than 5% after the news.

Despite the bleak forecast, the company reported better-than-expected same-store sales. Its sales rose 1.4% to $US16.67 billion, above analyst predictions of $US16.61 billion. The retailer earned an adjusted $US0.91 per share, above analyst estimates of $US0.88.

“While we expect the fourth-quarter environment to be highly competitive, we are very confident in our holiday season plans,” Brian Cornell, Target’s chairman and CEO said in a release.

The department store operator, like Wal-Mart and other competitors, have the difficult task of drawing customers to their stores, as consumers shift to online shopping and tech giants like Amazon.

Target was down 20.93% for the year.

To read more about how the company has prepared in advance of the holiday season, click here.

Target stock price