Shares of Target Corporation jumped 6% in Tuesday’s trade to reach the 11-month high of $119.65 apiece on the NYSE, even as the company reported another quarter of falling revenue and declining customer traffic at its stores.
However, the retailer’s new CEO pledged a return to sales growth and issued an upbeat profit outlook, signalling a potential turnaround at the struggling company.
The company delivered another quarter of falling and customer traffic at its stores, underscoring the challenges faced by new CEO Michael Fiddelke, a 20-year company veteran who succeeded longtime CEO Brian Cornell last month.
Target earned $2.30 per share, or $1.05 billion, for the three-month period ended 31 January. That compares with $2.41 per share, or $1.10 billion, during the year-ago period. Adjusted earnings per share for the most recent quarter were $2.44.
Sales fell 1.5% to $30.45 billion during the latest period. For the full year, sales declined nearly 2% to $104.78 billion.
Comparable sales — sales at established stores and online channels — fell 2.5%, following a 2.7% dip in the fiscal third quarter. The latest figure marks 11 quarters out of the past 13 in which Target has posted either declines or flat growth in this metric, AP reported.
Target guides for 2% sales growth
Target said it expects net sales for the fiscal year to increase by 2%, implying projected sales of $106.88 billion. That is slightly above analysts’ expectations of $106.7 billion. The company also anticipates earnings per share to be in the range of $7.50 to $8.50.
The company added that its new stores and non-merchandise sales, such as advertising and membership, would contribute more than one percentage point of growth.
Fiddelke is expected to reveal details about his plans to turn around Target on Tuesday during the company’s annual meeting in Minneapolis. Investors are eager for a return to Target’s former dominance in affordable chic, for which it earned the nickname “Tarzhay” in years past.
US stock market crash
The US , with the Dow Jones Industrial Average falling 1,135 points, or 2.3%. If that holds, it would mark the blue-chip index’s first 1,000-point decline since April 10, 2025.
The S&P 500 fell by 2.2%, while the tech-heavy Nasdaq Composite was down 2.3%. The weakness comes as tensions between the US, Israel, and Iran continue to escalate, keeping crude oil prices elevated.
Investors are worried that rising energy prices may ripple through the economy, pushing up costs at a time when investors are hoping inflation will ease enough to prompt the Federal Reserve to cut interest rates again later this year.
(With inputs from AP)
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