Halister News

(Bloomberg) -- Target sees year adj. EPS “$5.00 or more,” saw $5.10-$5.30 Nov. 16, est. $5.19. TGT drops 4.9% pre-mkt; WMT down 1.3%.

• Sees 4Q adj. EPS $1.45-$1.55, saw $1.55-$1.75, est. $1.66
• Now sees 4Q comp. sales down 1% to down 1.5% vs prior view down 1% to up 1%
• Nov./Dec. holiday comp. sales down 1.3%; comp. sales in Target stores fell more than 3% (digital sales grew more than 30%)
• Cites early season sales softness, disappointing traffic, sales trends in stores; Dec. digital sales grew >40%
• Transactions were flat y/y, as digital transaction growth of more than 30% was offset by 1.7% decline in comp. store transactions
• Comp. sales in Signature Categories – including Toys – grew nearly 3ppts faster than co. avg; comps. in electronics and entertainment declined in high single digit range
• Comps. in food and essentials both declined in low single- digit range
• Says costs associated with accelerated mix shift between stores, digital channels, highly promotional competitive environment had negative impact on 4Q margins, EPS
• TGT to release 4Q results Feb. 28

Link to Statement:Link