US retailer Target Corp. has trimmed its full-year earnings forecast after revealing a drop in third-quarter profits and slower-than-expected sales growth.
In the three months ended 2 November, earnings dropped to US$341m, or 54 cents per share, from $637m a year earlier. Excluding expenses from its expansion into Canada, Target’s earnings were 84 cents per share.
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Operating profit was down to $703m from $1.16bn last year. Sales fell 1.9% to $17.26bn. Wall Street had expected $17.38bn.
“Target’s third quarter financial results reflect continued strong execution in our US Segment in an environment where consumer spending remains constrained,” said CEO Gregg Steinhafel. “As our focus shifts to the fourth quarter, we are intently focused on delivering outstanding merchandise, an easy, fun shopping experience and an unbeatable combination of everyday low prices.”
Target, looking forward, said it expects to earn an adjusted $4.59 to $4.69 per share for the year, compared with an earlier estimate of $4.70 to $4.90 per share.
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