Target Corporation (NYSE:TGT) stock was hit hard today following an update for its holiday outlook.
Target Corporation says that it is expecting earnings per share for the fourth quarter of the year to range from $1.05 to $1.25. This is a mediocre outlook for TGT stock as the high end of those expectations is just above Wall Street’s earnings per share estimate of $1.24 for the fourth quarter.
Target Corporation also says that it is expecting comparable sales growth for the fourth quarter of the year to be flat to 2%. It notes that this will translate into comparable sales growth of flat to 1% for the full year of 2017.
TGT also made changes to its full-year outlook for 2017 when providing expectations for the fourth quarter. It says that earnings per share should now range from $4.40 to $4.60 for the year. Its previous guidance had earnings per share for the period coming in between $4.35 to $4.55. Analysts are looking for earnings per share of $4.52 for 2017.
Target Corporation was likely expecting more traffic for the 2017 holiday season, if its hiring plans are taken into account. The company’s holiday hiring plans for the current year include adding 100,000 seasonal workers. This is up from the 70,000 seasonal workers that the company hired in 2016 to help with the holidays.
The retailer also recently announced plans to close 12 stores in the U.S. The stores will be closing in February 2018. TGT is closing these stores down because they have been under performing for several years. It already has plans to open 35 new locations in 2018.
Target Corporation says that it will be providing a post-holiday financial update on Jan. 9, 2018.
TGT stock was down 9% as of Wednesday morning and is down 24% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.