Target Reports November/December Sales and Updates Fourth Quarter 2016 Guidance
January 18 2017 - 6:59AM
Business Wire
Target Corporation (NYSE: TGT) today announced that comparable
sales during the combined November/December period decreased 1.3
percent. 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.
"While we were pleased with Black Friday sales, December digital
sales growth of more than 40 percent and continued strength in our
Signature Categories, these results were offset by early season
sales softness and disappointing traffic and sales trends in our
stores," said Brian Cornell, chairman and CEO of Target.
November/December Performance Metrics:
- Comparable sales in Target stores
declined more than 3 percent, partially offset by digital sales
growth of more than 30 percent.
- Transactions were flat compared to last
year, as digital transaction growth of more than 30 percent was
offset by a 1.7 percent decline in comparable store
transactions.
- Category performance:
- Comparable sales in Signature
Categories – including Toys – grew nearly 3 percentage points
faster than the Company average.
- Comparable sales in Electronics and
Entertainment declined in the high single digit range.
- Comparable sales in Food and Essentials
both declined in the low single-digit range.
"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,” Cornell continued. “Despite these
challenges, we are positioned to deliver full-year Adjusted EPS1 of
$5.00 or more in 2016, which would mark an all-time high for
Target. And, importantly, our team has made substantial progress in
positioning Target for long-term success by improving the shopping
experience both in stores and on Target.com, transforming our
supply chain and technology to support every way our guests want to
shop, and developing new store formats that allow us to reach new
guests in dense urban and suburban markets.”
Fourth Quarter and Fiscal 2016 Guidance
Target now expects fourth quarter 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. In fourth quarter 2016, Target
expects both GAAP EPS from continuing operations and Adjusted EPS
of $1.45 to $1.55, compared with prior guidance of $1.55 to
$1.75.
For full-year 2016, Target now expects GAAP EPS from continuing
operations of $4.57 to $4.67, compared with prior guidance of $4.67
to $4.87. The Company expects full-year 2016 Adjusted EPS of $5.00
to $5.10, compared with prior guidance of $5.10 to $5.30. The
43-cent difference between these ranges reflects $0.44 of early
debt-retirement losses and a $0.01 benefit from the resolution of
income tax matters.
Fourth quarter and full-year 2016 GAAP EPS from continuing
operations may include the impact of unforeseen discrete items
which may be excluded in calculating Adjusted EPS. The Company is
not currently aware of any such discrete items beyond those already
reported in the first, second and third quarters of 2016.
The Company plans to release its fourth quarter financial
results on Feb. 28, 2017.
Miscellaneous
Statements in this release regarding fourth quarter and
full-year 2016 earnings per share and comparable sales guidance are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements are
subject to risks and uncertainties which could cause the Company’s
actual results to differ materially. The most important risks and
uncertainties are described in Item 1A of the Company’s Form 10-K
for the fiscal year ended Jan. 30, 2016. Forward-looking statements
speak only as of the date they are made, and the Company does not
undertake any obligation to update any forward-looking
statement.
In addition to the guidance for GAAP EPS from continuing
operations provided in this release, the Company provides Adjusted
EPS guidance for the fourth quarter and full-year 2016. Adjusted
EPS is not in accordance with, or an alternative for, generally
accepted accounting principles in the United States. Management
believes Adjusted EPS is useful in providing period-to-period
comparisons of the results of the Company’s ongoing retail
operations. The most comparable GAAP measure for Adjusted EPS is
diluted EPS from continuing operations. Adjusted EPS should not be
considered in isolation or as a substitution for analysis of the
Company’s results as reported under GAAP. Other companies may
calculate Adjusted EPS differently than the Company does, limiting
the usefulness of the measure for comparisons with other
companies.
About TargetMinneapolis-based Target Corporation (NYSE:
TGT) serves guests at 1,803 stores and at Target.com. Since 1946,
Target has given 5 percent of its profit to communities, which
today equals more than $4 million a week. For more information,
visit Target.com/Pressroom. For a behind-the-scenes look at Target,
visit Target.com/abullseyeview or follow @TargetNews on
Twitter.
1Adjusted EPS refers to Adjusted EPS from continuing operations
and is a non-GAAP financial measure that excludes losses on the
early retirement of debt and the impact of certain discretely
managed items. See the “Miscellaneous” section of this release for
additional information about Adjusted EPS.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170118005563/en/
Target CorporationInvestors:John Hulbert,
612-761-6627orMedia:Erin Conroy, 612-761-5928orTarget Media
Hotline, 612-696-3400
Target (NYSE:TGT)
Historical Stock Chart
From Aug 2024 to Sep 2024
Target (NYSE:TGT)
Historical Stock Chart
From Sep 2023 to Sep 2024