Target Corporation (NYSE:TGT) is expected to report a year-over-year decline in both its sales and profits for the third quarter when it reports its latest financials before the stock market opens on Wednesday, November 15.
In August when reporting its second quarter results, Target posted its first sales decline in six years due to consumer pullback on discretionary spending such as home goods and clothes amid inflationary pressures. This is expected to continue to weigh on Target’s results in 3Q.
The retailer expects its 3Q comparable sales to decline by a mid-single-digit percentage when compared to the same quarter in 2022 and adjusted earnings per share (EPS) in the range of $1.20 to $1.60.
This sales forecast is in line with Wall Street analysts’ forecast of a 4.6% year-over-year decline in sales to $25.3 billion.
The analysts expect EPS above Target’s guidance midpoint of $1.40 at $1.47. This would represent a 4.5% decline over EPS of $1.54 in the year-ago quarter.
Target shares traded up 1.4% at US$108.43 on Friday afternoon. The stock is down 28.5% in the year to date.
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