US: Target lowers guidance on soft sales trends
Retail giant Target Corporation has lowered its first quarter sales and earnings guidance, blaming softer than expected trends in seasonal and weather-sensitive categories.
The US company issued the update following the settlement of its debt tender offers and the completion of the sale of its credit card business to TD Bank Group.
It now expects first quarter comparable store sales to be flat, with adjusted earnings per share slightly below the low end of its prior guidance of US$1.10-1.20.
Reported earnings per share are expected to be 28 cents below the adjusted figure, thanks to losses related to the early retirement of $445m of debt and earnings dilution from the company’s Canadian business, offset by gains from the credit card business sale.
But Target expects full-year adjusted earnings to be in line with the previous guidance of $4.85-5.05 per share.
The company expects to issue first quarter earnings figures on 22 May.
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Retail giant Target Corporation suffered a double-digit profit dip in the second quarter, thanks to softer than expected sales in the US and start-up costs in Canada....
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