Target boosted its holiday-quarter comparable sales forecast on robust shopper demand but profit margin concerns sent its shares down nearly 3 percent. The retailer reported record-breaking sales on Black Friday and Cyber Monday, prompting the sales forecast increase. However, Target maintained its earnings per share forecast, suggesting discounts were crucial to driving sales. Analysts expressed concerns about the impact of inventory buildups and margin pressure on profits.
raised its holiday-quarter comparable sales forecast on Thursday, buoyed by robust shopper demand for clothing, toys and beauty products during November and December, but profit margin concerns sent its shares down nearly 3 per cent.
Target’s shares were down 2.6 per cent in morning trading. Including today’s losses, its stock is down 7 per cent over the past year, as analysts said investors might want more clarity on reaffirmed profit forecasts. It estimated the costs for preparing for the three-day strike in October reduced the retailer’s profit margins by nearly 1 percentage point., which issued a more downbeat outlook for the holiday quarter.
Some of the promotions included up to 40 per cent off on sweatshirts, sweatpants, fleece and denim products, while it also increased its toy collections priced under $20.
TARGET SALES PROFITS MARGIN HOLIDAY SEASON
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