Overview
- Comparable sales fell 2.7% in Q3, missing LSEG forecasts for a 2.08% drop, as revenue came in at $25.27 billion and earnings per share reached $1.78 versus $1.72 expected.
- Target cut its full-year adjusted EPS guidance to $7.00 to $8.00, excluding severance and other one-time items, narrowing the prior $7 to $9 range.
- Household essentials sales declined 3.7% and digital comparable sales rose 2.4%, short of Visible Alpha expectations for 3.18% growth online.
- A prolonged U.S. government shutdown that delayed federal pay and food-stamp benefits, plus inflation and tariff concerns, weighed on discretionary demand.
- Incoming CEO Michael Fiddelke, who takes over in February, has moved to streamline operations with 1,800 corporate layoffs, price cuts on 3,000 staples, and a push to refine merchandising and technology.