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.免責聲明：投資有風險，本文並非投資建議，以上內容不應被視為任何金融產品的購買或出售要約、建議或邀請，作者或其他用戶的任何相關討論、評論或帖子也不應被視為此類內容。本文僅供一般參考，不考慮您的個人投資目標、財務狀況或需求。TTM對信息的準確性和完整性不承擔任何責任或保證，投資者應自行研究並在投資前尋求專業建議。