Target shows decline following lackluster sales ahead of holiday time
Date
11/21/2024 7:56:54 AM
(MENAFN) Target shows decline on Wednesday following the retailer severely missed Wall Street's quarterly profits forecasts and cut its full-year revenue guidance.
The seller’s stock dropped 19 percent throughout morning trading after it stated it's taking a more careful stance for the most critical quarter in the trade industry following facing weakness in some discretionary fields, despite slashing prices on 2,000 items this holiday season to drive traffic. Shares are on speed for the poorest day since May 2022, as released by Dow Jones market Data Group.
Target CEO Brian Cornell stated that the firm "encountered some unique challenges and cost pressures" that affected its bottom-line performance through the past three-month period.
Among its issues, Cornell informed analysts there was "continued softness" in specific discretionary fields "as consumers keeps spending carefully."
The big-box seller is now anticipating store sales to be "approximately flat" throughout the fourth quarter. It is also expecting that its full-year adjusted profits per share are going to range from USD8.30 to USD8.90.
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