Here's Why Target's Lower 2016 Earnings Guidance Is a Really Bad Sign

Target lowered its full-year earnings guidance on Thursday, just as the retail sector heads into some of the busiest times of the year.

Author:: Scott Gamm
Publish date:: Aug 17, 2016 9:05 AM EDT

Target (TGT) - Get Report lowered its full-year earnings guidance on Wednesday, just as the retail sector heads into some of the busiest times of the year. 'More worrisome than falling comparable store sales was that they lowered forward guidance during a time in which they should receiving higher sales and seeing more growth with the back-to-school shopping season, as well as the holiday season,' said Christine Short, sr. vice president at Estimize. Comparable stores sales in second quarter slipped 1.1 percent, in-line with estimates, but the first negative reading since 2014. The retailer now expects full-year profit between $4.80-$5.20 a share, compared to a previously expected $5.20-$5.40 a share. Target's digital sales grew 16 percent, compared to 23 percent in first quarter, amid competition from Amazon (AMZN) - Get Report . TheStreet's Scott Gamm reports from Wall Street.