Target slides after disappointing holiday guidance
- Target reported earnings and sales that topped estimates in the third quarter.
- It raised its guidance for the full year, but issued a lower profit forecast for the holiday season.
- Target shares slide after the news.
- To see Target's stock price, click here.
Target's shares slid in pre-market trading after the retailer issued an underwhelming profit forecast for the holiday season.
The company sees earnings of $1.05 to $1.25 per share in the fourth quarter, below the Wall Street estimate of $1.24. Its shares fell more than 5% after the news.
Despite the bleak forecast, the company reported better-than-expected same-store sales. Its sales rose 1.4% to $16.67 billion, above analyst predictions of $16.61 billion. The retailer earned an adjusted $0.91 per share, above analyst estimates of $0.88.
"While we expect the fourth-quarter environment to be highly competitive, we are very confident in our holiday season plans," Brian Cornell, Target's chairman and CEO said in a release.
The department store operator, like Wal-Mart and other competitors, have the difficult task of drawing customers to their stores, as consumers shift to online shopping and tech giants like Amazon.
Target was down 20.93% for the year.
