=Target (TGT) issues downside guidance

TGT issues downside guidance due to softer-than-expected holiday sales  :

• Co announced that comparable sales during the combined November/December period decreased 1.3%.
  • Comparable sales in Target stores declined more than 3%, partially offset by digital sales growth of more than 30%.
  • 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.
• Co issues downside guidance for Q4 (Jan), sees EPS of $1.45-1.55 vs. $1.65 Capital IQ Consensus Estimate; down from prior guidance of $1.55-1.75.
  • Now expects Q4 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.
• Co issues downside guidance for FY17 (Jan), sees EPS of $5.00-5.10 vs. $5.20 Capital IQ Consensus Estimate.
• "While we significantly outpaced the industry's digital performance, the costs associated with the accelerated mix shift between our stores and digital channels and a highly promotional competitive environment had a negative impact on our fourth quarter margins and earnings per share,"