The Target logo appears in its store on 42nd Street in Times Square in New York City.
Deb Cohen Auerbach | UCG | Global Photo Collection | Getty Images
Goal Holiday quarter results and forecasts for next year will be announced on Tuesday.
Here's what Wall Street analysts surveyed by LSEG, formerly known as Refinitiv, expect for the company's fourth quarter:
Earnings per share: $2.41 expected Revenue: $31.83 billion expected
Target, which sells a lot of discretionary merchandise like clothing and home goods, has reported declines in comparable sales for two straight quarters. The industry measure, also called same-store sales, excludes the impact of store openings, closings and renovations.
The company previously said it expects this trend to continue, even during the holiday season. It said in November that it expects comparable sales to decline by about the mid-single digits in the fiscal fourth quarter and adjusted earnings per share to range between $1.90 and $2.60.
To attract value-focused shoppers, the cheap chic retailer emphasized low prices and high-frequency categories, such as food and beauty. During the holiday season, for example, the company focused on a wide range of toys and gifts for under $25. And last month, it launched a new low-priced private label brand called Dealworthy, including items like socks, paper towels, laundry detergent and more, with most items costing less than $10.
Compared to its big competitor Walmart, Target has faced another challenge: Grocery stores make up a smaller portion of its business. This category attracts the most consistent traffic and sales, even as shoppers cut back in other areas. Grocery accounts for about 20% of Target's annual sales compared to about 60% of Walmart's annual sales in the United States
Some Target stores are also losing a separate driver of traffic: pharmacies. CVS Health It said in January that it would close some locations in Target stores, part of a broader plan by CVS to reduce its store count. CVS and Target declined to specify how many pharmacies will be closed.
Target is scheduled to hold a financial meeting with investors on Tuesday in New York City.
As of Monday's close, Target shares were up about 6% so far this year. That's less than the S&P 500's gain of roughly 8% over the same period. Target shares closed Monday at $150.49 per share, bringing the company's market value to nearly $70 billion.
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