U.S. discount retailer Target (TGT) has reported mixed financial results for this year’s third quarter as consumers continue to pullback their spending.
The Minneapolis, Minnesota-based company reported earnings per share (EPS) of $1.78 U.S., which beat the consensus Wall Street forecast of $1.72 U.S.
But revenue in the July through September period totaled $25.27 billion U.S., which was below the $25.32 billion U.S. expected among analysts.
Target lowered its full-year profit forecast as it grapples with weak spending and shoppers on the hunt for deals and value.
Target did maintain its sales guidance for the year-end holidays, saying it expects sales to decline by a low single-digit percentage in the fourth quarter.
However, the company now expects earnings for the entire year of $7 U.S. to $8 U.S., lowering the high end of its previous range of $7 U.S. to $9 U.S.
On an earnings call, new Target CEO Michael Fiddelke declined to say when the company’s sales would turn positive again.
Fiddelke did say that Target plans to increase its investments next year to turn around its stores and boost sales. Capital expenditures of $5 billion U.S. are expected in 2026, a 25% year-over-year increase.
Target’s sales have been stagnant for four years, or since the Covid-19 pandemic began to wane. Management says the retailer faces tough competition and more discerning consumers.
Some customers have also boycotted Target after the retailer rolled back many of its diversity, equity and inclusion programs earlier this year.
In October, Target announced it would cut 1,800 corporate jobs, its largest layoff in more than a decade.
TGT stock has declined 35% this year to trade at $88.53 U.S. per share.
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