Target shares plunge as investors panic over holiday forecast

By RetailFOXBusiness

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Target’s (NYSE:TGT) shares plunged on Wednesday, taking a big hit after the retailer reported its latest quarterly results with investors focusing on the company’s guidance for the holiday period.

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While Target surpassed third-quarter earnings and revenue expectations, the company guided for fourth-quarter adjusted earnings per share of $1.05 to $1.25 versus the $1.24 analyst consensus estimate, according to Thomson Reuters.

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On its earnings call, Target talked up its many business changes including a “tremendous response” to its new, smaller footprint stores, and also noted same-day delivery services and the ability for shoppers to leave their baskets at checkouts at some locations and arrange for later delivery.

Target cautioned that the fourth quarter will be competitive. They are looking for same-store sales to be “flat or better” with an upside potential of 2%. Target did not provide 2018 guidance.

Target slipped 8.2% to $55.16 in recent trading.