Target CEO 'guiding for some conservatism' as the retailer misses earnings estimates ahead of the holidays

Published On Nov 20, 2024, 6:36 AM

Target Corporation reported disappointing third-quarter earnings, missing Wall Street profit estimates and slashing its full-year guidance. The company's gross profit margin dropped, while comparable sales failed to meet expectations. CEO Brian Cornell expressed a cautious outlook for the holiday season, highlighting a shift in consumer spending behavior towards more discretionary items. Target's rivals, particularly Walmart, reported stronger performance, contributing to a significant drop in Target's stock price by 16% in premarket trading.

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Stock Forecasts

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Negative

Given the missed earnings and cautious guidance for the holiday season, Target is facing significant headwinds including increased competition from Walmart and changing consumer spending patterns. Investors may expect continued pressure on the stock price in the near term as uncertainty looms over holiday sales and overall performance. Additionally, inventory issues and reduced profit margins contribute to a negative outlook for Target's stock.

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