U.S. discount retailer Target (TGT) missed its second-quarter sales forecast and lowered its forward guidance.
The big-box retailer cut both its full-year sales and profit forecasts, saying consumers are refusing to spend on discretionary items at its stores.
Target now expects comparable sales to decline by about mid single digits for the full fiscal year and earnings per share to range from $7 U.S. to $8 U.S., down from a prior estimate of $7.75 U.S. to $8.75 U.S.
The company’s earnings per share (EPS) in Q2 came in at $1.80 U.S. versus $1.39 U.S. that was expected.
Revenue in the quarter amounted to $24.77 billion U.S. compared to $25.16 billion U.S. that had been anticipated among analysts who cover the company.
Essentials such as groceries account for only about 20% of Target’s annual revenue compared with more than half of Walmart’s annual sales.
Target has struggled to win over shoppers in the face of inflation. Comparable sales in Q2 declined 5.4%. Digital comparable sales fell 10.5% from a year earlier.
The stock of Target has fallen 30% over the past 12 months to trade at $125.05 U.S. per share.
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