Target cuts its profit forecast as sales for electrical goods falter
Retail group Target cut its profit outlook yesterday after its quarterly sales fell by more than expected.
The sales drop was due to a weakened demand for electronics and a disappointing performance for its grocery business.
The company said like-for-like sales in the second half of the year would be between flat and minus two per cent.
It revised its profit forecast for the year to between $4.80 and $5.20 per share (369p – 400p) – down from a forecast of $5.20 – $5.40 (400p – 415p).
Target’s chief executive Brian Cornell said customer visits had declined; the sales drop in electronic goods was in double digits.
Electronics accounted for around two-thirds of the company’s fall in like-for-like sales. Apple products performed particularly badly, with sales down by over 20 per cent.
Cornell said the company’s market share in clothing and home improvement had increased.