Target Reports November/December Sales and Updates Fourth Quarter 2016 Guidance
"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
November/December Performance Metrics:
Comparable sales in
Targetstores 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 single-digit range.
"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
Fourth Quarter and Fiscal 2016 Guidance
For full-year 2016,
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
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
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
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.
John Hulbert, 612-761-6627
Erin Conroy, 612-761-5928
Target Media Hotline, 612-696-3400