Target sales, profits decline for another quarter, but shares rise on solid outlook |
Target sales, profits decline for another quarter, but shares rise on solid outlook
Target reported another quarter of declining sales and profits as it struggles to regain its footing with customers who are facing higher prices almost everywhere.
But the Minneapolis company on Tuesday offered a solid annual profit outlook that was better than Wall Street had been projecting. It also said it believes net sales will grow every quarter this year.
Target also said comparable-store sales rose to start the current quarter.
Shares rose about 1.5% before the opening bell.
The company earned $2.30 per share, or $1.05 billion, for the three-month period ended Jan. 31. That compares with $2.41 per share, or $1.10 billion, during the year-ago period. Adjusted earnings per share for the most recent quarter was $2.44.
Sales fell 1.5% to $30.45 billion during the latest period. For the full year, sales fell nearly 2% to $104.78 billion.
Analysts were expecting $2.16 per share on sales of $30.46 billion, according to a survey by FactSet.
Comparable sales — sales at established stores and online channels — fell 2.5%, followed by a 2.7% dip in the fiscal third quarter. The latest figure marks 11 quarters out of the past 13 that Target has posted either declines or flattish growth for this measure.
Target’s performance underscores the challenges faced by new CEO Michael Fiddelke, a 20-year company veteran, who succeeded longtime CEO........