Target reported sales that rose 1.4% between Nov. 1 and Dec. 31 in stores and through its digital channels. However, the number came in below forecasts. The retailer also warned that growth for the full quarter, which includes January, will likely come in less than half the 3% to 4% growth it had been expecting.
The Minneapolis-based company pointed to weak sales of toys and electronics – two key holiday-season categories that all retailers count on to boost sales. It said it was maintaining its profit targets, in part because other categories that did have robust sales earn higher margins.
“We faced challenges throughout November and December in key seasonal merchandise categories and our holiday sales did not meet our expectations. However, because of the durability of our business model, we are maintaining our guidance for our fourth-quarter earnings per share. We also remain on track to deliver historically strong full-year results in 2019, including comparable sales growth of more than 3 percent and record-high EPS reflecting mid-teens growth compared with last year," said Brian Cornell, CEO of Target.
Jeff Marks, senior portfolio analyst with Action Alerts PLUS, weighed in on Target's numbers.
Watch the full video above for his take.
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