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Target Shares Slide Ahead of Black Friday After Sales Miss

November 20, 2018 Business 3 Views The big-box retailer (tgt) said Tuesday that it generated $ 17.8 billion in revenue…

The big-box retailer (tgt) said Tuesday that it generated $ 17.8 billion in revenue in the last quarter, a 5.6% jump compared to the previous quarter. to the same period in 2017. Same-store sales, an important measure in retail to see how stores are performing, rose 5.1%. Digital channel sales rose 49% during the period.

Target was able to post a $ 1.16 earnings per share, but cautioned that its margin rate fell from 29.6% in the third quarter of 2017 to 28.7% this year.

While Target was able to grow revenue and not a solid profit, analysts had expected higher same-store sales figures. Analysts also expected a 29.6% gross margin instead of the 28.7% margin Target posted.

Soon after Target announced its earnings, shareholders began offloading shares about concerns there’s some weakness in Target’s business. The company did little to help its cause. In a earnings statement, Target said forecast 5% growth in same-store sales for the fourth quarter, which would be down sequentially from its revenue growth in the third quarter.

Still, quite a bit can happen in the critical fourth quarter holiday shopping season. Target, like other major retailers, is offering a lot of deals on products throughout its store this week for Black Friday and Cyber ​​Monday and will continue to offer sales throughout the shopping season. Target also said that it would expand its toy section this year to attract more shoppers.


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