MINNEAPOLIS--(BUSINESS WIRE)--Jan. 18, 2017--
Target Corporation (NYSE: TGT) today announced that comparable
sales during the combined November/December period decreased 1.3
percent. For those two months, total sales decreased 4.9 percent,
reflecting the impact of the December 2015 sale of the Company’s
pharmacy and clinic businesses. As a result of this softer-than-expected
sales performance, the Company updated its fourth quarter and full-year
"While we were pleased with Black Friday sales, December digital sales
growth of more than 40 percent and continued strength in our Signature
Categories, these results were offset by early season sales softness and
disappointing traffic and sales trends in our stores," said Brian
Cornell, chairman and CEO of Target.
November/December Performance Metrics:
Comparable sales in Target stores declined more than 3 percent,
partially offset by digital sales growth of more than 30 percent.
Transactions were flat compared to last year, as digital transaction
growth of more than 30 percent was offset by a 1.7 percent decline in
comparable store transactions.
Comparable sales in Signature Categories – including Toys – grew
nearly 3 percentage points faster than the Company average.
Comparable sales in Electronics and Entertainment declined in the
high single digit range.
Comparable sales in Food and Essentials both declined in the low
"While we significantly outpaced the industry's digital performance, the
costs associated with the accelerated mix shift between our stores and
digital channels and a highly promotional competitive environment had a
negative impact on our fourth quarter margins and earnings per share,”
Cornell continued. “Despite these challenges, we are positioned to
deliver full-year Adjusted EPS1 of $5.00 or more in 2016,
which would mark an all-time high for Target. And, importantly, our team
has made substantial progress in positioning Target for long-term
success by improving the shopping experience both in stores and on
Target.com, transforming our supply chain and technology to support
every way our guests want to shop, and developing new store formats that
allow us to reach new guests in dense urban and suburban markets.”
Fourth Quarter and Fiscal 2016 Guidance
Target now expects fourth quarter comparable sales in the range of (1.5)
percent to (1.0) percent, compared with prior guidance of (1.0) percent
to 1.0 percent. In fourth quarter 2016, Target expects both GAAP EPS
from continuing operations and Adjusted EPS of $1.45 to $1.55, compared
with prior guidance of $1.55 to $1.75.
For full-year 2016, Target now expects GAAP EPS from continuing
operations of $4.57 to $4.67, compared with prior guidance of $4.67 to
$4.87. The Company expects full-year 2016 Adjusted EPS of $5.00 to
$5.10, compared with prior guidance of $5.10 to $5.30. The 43-cent
difference between these ranges reflects $0.44 of early debt-retirement
losses and a $0.01 benefit from the resolution of income tax matters.
Fourth quarter and full-year 2016 GAAP EPS from continuing operations
may include the impact of unforeseen discrete items which may be
excluded in calculating Adjusted EPS. The Company is not currently aware
of any such discrete items beyond those already reported in the first,
second and third quarters of 2016.
The Company plans to release its fourth quarter financial results on
Feb. 28, 2017.
Statements in this release regarding fourth quarter and full-year 2016
earnings per share and comparable sales guidance are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Such statements are subject to risks and
uncertainties which could cause the Company’s actual results to differ
materially. The most important risks and uncertainties are described in
Item 1A of the Company’s Form 10-K for the fiscal year ended Jan. 30,
2016. Forward-looking statements speak only as of the date they are
made, and the Company does not undertake any obligation to update any
In addition to the guidance for GAAP EPS from continuing operations
provided in this release, the Company provides Adjusted EPS guidance for
the fourth quarter and full-year 2016. Adjusted EPS is not in accordance
with, or an alternative for, generally accepted accounting principles in
the United States. Management believes Adjusted EPS is useful in
providing period-to-period comparisons of the results of the Company’s
ongoing retail operations. The most comparable GAAP measure for Adjusted
EPS is diluted EPS from continuing operations. Adjusted EPS should not
be considered in isolation or as a substitution for analysis of the
Company’s results as reported under GAAP. Other companies may calculate
Adjusted EPS differently than the Company does, limiting the usefulness
of the measure for comparisons with other companies.
Minneapolis-based Target Corporation (NYSE:
TGT) serves guests at 1,803 stores and at Target.com. Since 1946, Target
has given 5 percent of its profit to communities, which today equals
more than $4 million a week. For more information, visit Target.com/Pressroom.
For a behind-the-scenes look at Target, visit Target.com/abullseyeview
or follow @TargetNews
1Adjusted EPS refers to Adjusted EPS from continuing
operations and is a non-GAAP financial measure that excludes losses on
the early retirement of debt and the impact of certain discretely
managed items. See the “Miscellaneous” section of this release for
additional information about Adjusted EPS.
View source version on businesswire.com: http://www.businesswire.com/news/home/20170118005563/en/
Source: Target Corporation
John Hulbert, 612-761-6627
Target Media Hotline, 612-696-3400