Target (NYSE:TGT) delivered stronger-than-expected Q4 earnings, but the retailer is bracing for a rough first quarter, warning of a meaningful profit drop as February sales came in weak. Shares fell 2.80% on Tuesday following the announcement.
The company's comparable sales rose 1.5%, driven by an 8.7% jump in digital sales, while in-store sales dipped 0.5%. Net sales were down 3.1% year-over-year at $30.9 billion, partly due to a shorter fiscal year. Operating income slid 21.3% to $1.5 billion, but earnings per share of $2.41 beat expectations of $2.26.
Walmart (NYSE:WMT) and Home Depot (NYSE:HD) have also raised concerns about weaker consumer spending, while sentiment surveys from the Conference Board and University of Michigan show declining confidence and inflation worries. Adding to the gloom, the Atlanta Fed slashed its Q1 2025 GDP forecast to -2.8%.
Target CFO Jim Lee said cold weather and cautious consumers weighed on sales, especially in discretionary categories, making the outlook for Q1 even tougher.
This article first appeared on GuruFocus.免责声明：投资有风险，本文并非投资建议，以上内容不应被视为任何金融产品的购买或出售要约、建议或邀请，作者或其他用户的任何相关讨论、评论或帖子也不应被视为此类内容。本文仅供一般参考，不考虑您的个人投资目标、财务状况或需求。TTM对信息的准确性和完整性不承担任何责任或保证，投资者应自行研究并在投资前寻求专业建议。