Target said it doesn’t think holiday sales will be enough to turn around a tough year.
The holiday season isn’t expected to be a bright one for Target this year after the retail giant reported tumbling third quarter profits and said it expects to see sales slump in the coming months, underscoring broader concerns about consumer spending heading into the holidays.
about 1,800 corporate jobs in October, on Wednesday said it expects sales to fall through the holiday shopping season as shoppers work through an affordability crisis.ended Nov. 1, or $1.51 per share, down significantly from $854 million one year ago and lower than the $1.71 per share analysts predicted. Sales fell 1.5% to $25.27 billion and comparable sales, defined as merchandise sales from established stores and online channels that have been open for at least 13 months, dipped 2.7% for the third-straight quarterly decline. The company said it expects comparable sales will continue to decline by low single digits in the next quarter, and it cut its full-year earnings expectation from a forecast of $7 to $9 per share to $7 to $8. Target said it will cut prices on thousands of food, beverage and other essential items in attempts to revive sales, and isto invest $5 billion in a comeback bid that will include new stores and upgrades to digital infrastructure and fulfilment capabilities.We’re launching text message alerts so you'll always know the biggest stories shaping the day’s headlines. Text “Alerts” to Rick Gomez, chief commercial officer for Target, said he expects people to skimp on new decorations this holiday season. He said shoppers bought candy and costumes—but not decor—at Halloween, and he thinks "the consumer will prioritize what goes under the tree versus what goes on the tree."
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