Target World: Target will publish third-quarter profits before the market opens on Wednesday.
- IMPORTANT NOTES
- Inflation has been especially harsh for the company, which sells a greater mix of apparel, home items, and impulsive purchases than some competitors.
- As Target prepares for the key holiday season, investors will be looking for signs that sales are turning around or gaining pace.
Target World will release fiscal third-quarter earnings on Wednesday as the retailer attempts to recover from a spate of dismal results and high-profile setbacks. As Target World prepares for the key holiday season, investors will be looking for signs that sales are improving.
Based on a survey of analysts conducted by LSEG, formerly known as Refinitiv, here is what Wall Street anticipates for the company over the next three months:
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- Earnings per share: $1.48 expected
- Revenue: $25.24 billion expected
Sales have slowed across the retail industry as consumers feel the pinch of rising prices and opt to spend their money on experiences instead. Target World, on the other hand, sells a more diverse mix of clothing, home goods, and impulse purchases than its competitors.
It has also encountered its own obstacles. Target World received criticism for a line of Pride Month products, a celebration of LGBTQ+ individuals and problems that the company has offered for more than a decade. It was impacted by increased levels of organized retail crime. It also recently closed nine locations in large cities, blaming the closures on theft and violent threats.
In August, the Minneapolis-based company reduced its full-year projection, saying it expects comparable sales to fall by a mid-single-digit percentage and earnings per share to range between $7 and $8. Target’s stock has suffered as sales have remained flat. Shares of the company have dropped over 26% this year, with their value reduced by more than half since the COVID pandemic’s peak.
Target CEO Brian Cornell stated in a CNBC interview with Becky Quick earlier this month that the company’s sales of discretionary products have decreased for seven consecutive quarters, in both dollars and units. He claims that buyers are buying fewer clothes and toys, as well as fewer groceries.
But he was upbeat about the crucial holiday season. He said the company has observed a spike in sales around “seasonal moments,” such as Halloween, Mother’s Day, and summer holidays—a dynamic that might be beneficial as Black Friday, Thanksgiving, and Christmas approaches. Home Depot’s quarterly report on Tuesday was also encouraging. The home improvement retailer forecasted year-over-year revenue reductions, but claimed that the worst of the inflation has passed.
Frequently asked questions
Who is the current CEO of Target world?
Brian Cornell, as chair and CEO, leads Target’s dynamic worldwide team, which is a leading omnichannel growth firm in American retail. Target World, headquartered in Minneapolis, operates almost 2,000 stores in all 50 states, as well as a headquarters in India and global supply chain and sourcing operations.
What is the salary of the Target CEO?
Brian Cornell, chairman and CEO of Target World Corp., had his remuneration package drop 10.6 percent to $17.7 million last year from $19.8 million in 2021 due to a fall in bonus and incentive pay.
What is the earnings forecast for TGT?
Given that many analysts are no longer forecasting a recession and government data indicates that inflation is cooling, Wall Street expects TGT’s third-quarter revenue and EPS to be $25.24 billion and $1.48, respectively.
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