The Target logo is seen on its store on 42nd Street in Times Square, New York.
Deb Cohn-Orbach | UCG | Universal Image Group | fake images
Aim will report its holiday quarter results and outlook for next year on Tuesday.
Here's what Wall Street analysts surveyed by LSEG, formerly known as Refinitiv, expect for the company's fourth quarter:
- Earnings per share: $2.41 expected
- Revenue: $31.83 billion expected
Target, which sells a host of discretionary merchandise such as clothing and home goods, has seen its comparable sales decline for two consecutive quarters. The industry metric, also called same-store sales, eliminates the effect of store openings, closings and renovations.
The company previously said it anticipated that trend to continue, including through the holiday season. It said in November it expected comparable sales to fall around mid-single digits in the fiscal fourth quarter and adjusted earnings per share to range between $1.90 and $2.60.
To attract value-focused shoppers, the cheap and chic retailer has emphasized low prices and higher-frequency categories, such as food and beauty. During the holiday season, for example, the company highlighted a wide variety of toys and gifts for under $25. Last month, it launched a new low-priced private label called Dealworthy, which includes items like socks, paper towels, laundry detergent and more, with most items costing under $10.
Compared to its large rival Walmart, Target has faced another challenge: Grocery is a smaller part of its business. The category attracts more stable foot traffic and sales, even as shoppers reduce their purchases in other areas. Groceries generate about 20% of Target's annual sales compared to nearly 60% of Walmart's annual sales in the US.
Some Target stores are also losing a different traffic driver: pharmacies. CVS Health said in January that it would close some Target store locations, part of a broader plan by CVS to reduce the number of stores. CVS and Target declined to say how many pharmacies would close.
Target will hold a financial meeting with investors on Tuesday in New York City.
As of Monday's close, Target shares are up nearly 6% so far this year. That falls short of the S&P 500's gains of about 8% over the same period. Target shares closed Monday at $150.49 each, bringing the company's market value to nearly $70 billion.
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