Target Corp. Cuts Q4 Topline And Bottom Line Expectations

(RTTNews) - Target Corp. (TGT) said, in the third quarter, its business delivered comparable sales growth of 2.7 percent. However, the company's third quarter profit performance was well below its expectations as sales and profit trends softened meaningfully in the latter weeks of the quarter. As a result, the company believes it is prudent to plan for a wide range of sales outcomes in the fourth quarter, centered around a low-single digit decline in comparable sales. Also, the company is now planning a wide range for its fourth quarter operating margin rate centered around 3 percent.

Target Corp. also announced an enterprise initiative to simplify and gain efficiencies across its business. The company expects to save a total of $2 to $3 billion over the next three years through the enterprise efficiency initiative.

For the third quarter, the company's bottom line came in at $712 million, or $1.54 per share compared with $1.49 billion, or $3.04 per share, prior year. Excluding items, adjusted earnings was $1.54 per share for the period. Analysts on average had expected the company to earn $2.13 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

The company's revenue for the quarter rose 3.4% to $26.52 billion from $25.65 billion last year. Analysts on average had estimated $26.38 billion in revenue.

Shares of Target Corp. are down 13% in pre-market trade on Wednesday.

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