Target Reports Flat Same-Store Sales in December; Misses Expectations (TGT)
Target Corporation (TGT) reported disappointing comparable sales in December. The discount retailer said sales were flat versus the expectation of increasing +1.3%.
Despite the missed expectation of December sales, the Minneapolis, Minnesota-based company still believes the fourth quarter EPS will meet or exceed previous low-end guidance.
“December sales were slightly below our expectations, as strong results late in the month did not completely offset softness in the first three weeks,” said Gregg Steinhafel, chairman, president and CEO of Target Corporation. “Similar to November, profitability for December benefited from our continued focus on achieving an appropriate balance between price investments and driving sales, combined with thoughtful inventory management. As a result, we expect Target’s fourth quarter 2012 earnings per share will meet or somewhat exceed the low end of our prior guidance. Looking ahead to 2013, we will continue to focus on profitably growing Target’s market share by combining unique merchandise, convenience, value and an unbeatable guest experience across our stores, online and mobile channels.”
The Bottom Line
Shares of Target (TGT) have a 2.45% dividend yield, based on last night’s closing stock price of $58.82. The stock has technical support in the $55-$56 price area. If the shares can firm up, we see overhead resistance around the $62-$64 price levels.
Target Corporation (TGT) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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