http://www.bloomberg.com/news/2014-08-20/target-lowers-its-forecast-as-sales-slump-canadian-losses-widen.html
By Renee Dudley
Bloomberg.com
Aug 20, 2014
Target Corp. (TGT), still struggling to rebound from last year’s hacker
attack, cut its forecast for the year as slumping sales and a money-losing
push into Canada take a toll on profit.
Target now expects full-year earnings of $3.10 to $3.30 a share, excluding
some items, down from a previous forecast of as much as $3.90, according
to a statement today. Analysts had predicted $3.44, the average estimate
compiled by Bloomberg.
The bleaker forecast follows a preliminary earnings report on Aug. 5 that
fell short of expectations, signaling that the company’s comeback effort
will be slow going. Target has been struggling to boost U.S. traffic,
repair its botched Canadian expansion and regain shoppers’ trust after
hackers stole millions of customers’ data last year. The retailer hired
PepsiCo Inc. (PEP) executive Brian Cornell as its new leader last month,
following the ouster of Gregg Steinhafel in May.
Target is relying heavily on sales promotions to entice shoppers, but it
doesn’t seem to be working, said Brian Yarbrough, an analyst at Edward
Jones & Co. in St. Louis. That means Target is squeezing margins without
much benefit.
[...]
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