Target cuts annual forecast after third-quarter earnings plunge
The company detailed that net sales were 1.5% lower than 2024, and comparable sales declined 2.7%.
Target store
Target reported that its third-quarter earnings plunged. The company lowered its full-year profit forecast as it noted volatility in spending and a tendency for shoppers to seek lower prices.
The company detailed that net sales were 1.5% lower than in 2024, and comparable sales declined 2.7%. Now, the company anticipates its full-year adjusted earnings per share to be between $7 and $8, trimming the top end of its previous forecast of $7 to $9.
Despite the results, the company is optimistic about the future:
"We’re laying the foundation for a stronger, faster and more innovative Target. It’s grounded in our purpose of bringing joy to our guests and focused on growth. We know there’s work to do, and we have the best team in retail to do it. With clear priorities guiding us, I’m proud of our progress and confident we’re on the right path," said Michael Fiddleke, Target's executive vice president and chief operating officer.
Target explained that comparable sales declined by 2.7% in the third quarter, reflecting a 3.8% decline in comparable store sales, partially offset by a 2.4% growth in comparable digital sales.
In addition, third-quarter operating income, which includes the impact of extraordinary items, was $0.9 billion, down 18.9% from the prior year. Excluding such extraordinary items, operating income was $1.1 billion.
Lower prices
- More than 20,000 new items, twice as many as last year.
- Thanksgiving meals for four for less than $20.
- Lower prices on thousands of food, beverage and staple items.
- Expanded logistics options, including expanded next-day shipping coverage, available to more than half of the U.S. population.
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