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假日季需求旺盛 塔吉特(TGT.US)上调Q4可比销售额指引

Strong demand during the holiday season has led Target (TGT.US) to raise its guidance for Q4 comparable sales.

Zhitong Finance ·  Jan 16 21:06

Target (TGT.US) has raised its comparable sales guidance for the fourth quarter.

According to the Zhitong Finance APP, due to better-than-expected holiday season sales, Target (TGT.US) currently expects comparable sales for the fourth quarter ending this January to increase by about 1.5%, up from the previous expectation of flat sales. The company maintained its earnings guidance.

For more than a year, Target has struggled to revive sales as consumers have reduced spending on non-essential items such as Housewares. Housewares has always been one of the strongest categories for the company.

Due to a series of missteps in inventory and product mix, the retailer lowered its profit expectations at the end of last year, leading to a significant drop in stock price. Meanwhile, Target's main competitor, Walmart (WMT.US), reported strong results, highlighting the differing trajectories of the two companies.

However, the latest results indicate that Target is making progress. During the Black Friday and Cyber Monday promotions, both online and in-store traffic increased by nearly 3%, driving sales to record levels. Comparable sales growth was 2% in November and December of last year.

The holiday sales data released by the retailer shows a mixed bag across the Industry. Lululemon Athletica (LULU.US) and American Eagle (AEO.US) raised their guidance earlier this week, stating that performance was better than expected, while Macy's (M.US) issued a pessimistic outlook.

Target stated that sales of non-essential products, particularly Outfits and toys, improved compared to the previous quarter. The company specifically noted that its $25 leggings (an affordable alternative to Lululemon's best-selling products) were very popular.

To boost sales, Target has also announced some adjustments to its leadership.

Current Senior Vice President of Store Operations Adrienne Costanzo will succeed the retiring Mark Schindele as Chief Store Officer. Sarah Travis, Senior Vice President responsible for social commerce and Target's digital advertising business, will be promoted to Chief Digital and Revenue Officer.

As of the time of writing, Target's stock price was down 1.29% in pre-market trading, having previously risen nearly 5%. Last year, the stock fell 5.1%, while the S&P 500 Index rose 23% during the same period.

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