Target November-December sales down 1.3%, guidance lowered
Staff Writer |
Target Corporation comparable sales during the combined November/December period decreased 1.3 percent.
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For those two months, total sales decreased 4.9 percent, reflecting the impact of the December 2015 sale of the company’s pharmacy and clinic businesses.
As a result of this softer-than-expected sales performance, the company updated its fourth quarter and full-year 2016 guidance.
Comparable sales in Target stores declined more than 3 percent, partially offset by digital sales growth of more than 30 percent.
Transactions were flat compared to last year, as digital transaction growth of more than 30 percent was offset by a 1.7 percent decline in comparable store transactions.
Comparable sales in Signature Categories – including Toys – grew nearly 3 percentage points faster than the company average.
Comparable sales in Electronics and Entertainment declined in the high single digit range.
Comparable sales in Food and Essentials both declined in the low single-digit range.
Target now expects fourth quarter comparable sales in the range of (1.5) percent to (1.0) percent, compared with prior guidance of (1.0) percent to 1.0 percent.
In fourth quarter 2016, Target expects both GAAP EPS from continuing operations and Adjusted EPS of $1.45 to $1.55, compared with prior guidance of $1.55 to $1.75 (consensus is $1.65)
For full-year 2016, Target now expects GAAP EPS from continuing operations of $4.57 to $4.67, compared with prior guidance of $4.67 to $4.87.
The company expects full-year 2016 Adjusted EPS of $5.00 to $5.10, compared with prior guidance of $5.10 to $5.30 (consensus is $5.20). The 43-cent difference between these ranges reflects $0.44 of early debt-retirement losses and a $0.01 benefit from the resolution of income tax matters.
Fourth quarter and full-year 2016 GAAP EPS from continuing operations may include the impact of unforeseen discrete items which may be excluded in calculating Adjusted EPS.
The company is not currently aware of any such discrete items beyond those already reported in the first, second and third quarters of 2016. ■