Missing the Target
CBJ — Target’s holiday-quarter profit forecast fell short of expectations on Wall Street and that has sent shares of the retailer down 10%.
The big-box chain forecast adjusted earnings of $1.05 to $1.25 per share for the fourth quarter, a range below most analysts’ estimates. It expects same-store sales in the quarter in a range of flat to 2% higher.
In October, Target said most of its holiday gifts would cost less than $15 and that it would offer customers free shipping beginning in November. It also has hired 100,000 temporary holiday workers, up from 70,000 in each of the prior four years, and raised its minimum hourly wage this year by 10%.
Target had a short-life here in Canada. It got off to a disastrous start and was never able to get on track in the highly competitive retail industry.