On Thursday morning, retail giant Target Corporation (TGT ) announced that it plans to discontinue operations in Canada.
Target announced that it now plans to discontinue operating stores in Canada through its indirect subsidiary, Target Canada Co. Target Canada currently operates 133 stores across Canada. TGT reported that it expects to see $5.4 billion in pre-tax losses on discontinued operations during the fourth quarter.
Target’s CEO Brian Cornell commented: “After a thorough review of our Canadian performance and careful consideration of the implications of all options, we were unable to find a realistic scenario that would get Target Canada to profitability until at least 2021. Personally, this was a very difficult decision, but it was the right decision for our company.”
The company now expects fourth quarter comparable store sales to rise 3%. Previously, the company expected to see a 2% rise in comps. For the fourth quarter, the company expects to see EPS between $1.43 and $1.47.
Target shares were up $2.94, or 4.00% during pre-market trading Thursday.