Target Earnings Beat But Outlook Hit by Canada Exit Charges

Target earnings for the fourth quarter were stronger than expected following a busy holiday season. Sales beat forecasts, up 3.8 percent at existing locations but profit outlook missed most estimates. Target warned shareholders of a dent in future earnings following the company's plans to exit the Canadian market after just two years. The botched entry into Canada will cost Target around $5.4 billion in charges. The retailer posted a loss of $2.64 billion or $1.50 a share for Q4 but total revenue beat estimates, coming in at $21.75 billion. Target has been entrenched in an overhaul effort, shaking up management and lowering its free shipping minimum this week.