A Target department store in North Miami Beach, Florida, on May 17, 2023.
Joe Raedle | Getty Images
Goal will report fiscal third-quarter results on Wednesday as the company tries to bounce back from a series of disappointing results and high-profile setbacks.
Investors will be listening for signs of a turnaround in the retailer’s sales as Target gears up for the crucial holiday season.
Here’s what Wall Street expects from the company over the next three months, based on a survey of analysts by LSEG, formerly known as Refinitiv:
- Earnings per share: $1.48 expected
- Revenue: $25.24 billion expected
Retail sales have slowed as consumers feel pain from higher prices and choose to spend money on experiences. Still, Target, which sells a heavier mix of clothing, home goods and impulse purchases than some rivals, is under particular pressure.
Moreover, the country has faced its own challenges. Target received backlash for a collection of merchandise for Pride month, a celebration of LGBTQ+ people and issues, which it has sold for more than a decade. It was hit by higher levels of organized retail crime. And recently, nine stores in major cities were closed, with the closures attributed to theft and threats of violence.
The Minneapolis-based company lowered its full-year forecast in August, saying it expects comparable sales to decline by about a mid-single-digit percentage and earnings per share to range from $7 to $8.
Target’s shares have suffered from stagnant sales. The company’s shares are down almost 26% this year, with their value falling by more than half since the heights of the Covid pandemic.
In a CNBC interview with Becky Quick that aired earlier this month, Target CEO Brian Cornell said the company’s durable goods sales have declined for seven straight quarters, both in dollars and units. He said consumers are buying fewer clothes and toys, and even fewer groceries.
But he sounded a positive note about the most important holidays. He said the company has seen sales increase around “seasonal times” such as Halloween, Mother’s Day and summer holidays — a dynamic that could help as Black Friday, Thanksgiving and Christmas approach.
DIY storeTuesday’s quarterly report also gave cause for optimism. The home improvement retailer forecast a year-over-year sales decline but said the worst of inflation is over.