Target (TGT) may have to do much more this year than Opt Warby Parker (WRBY) glasses Because he becomes the last detail to warn of the impact of Trump prices.
The retailer at reduced prices delivered sales, a gross beneficiary margin and profits for the fourth quarter on Tuesday. Target has credited sequential improvements in clothing and household products for the best than expected quarter.
But the cheerful news stopped with the holiday numbers – although the impression has shown that the margins and sales have dropped from year to year.
On the one hand, Target again underperform the Walmart (WMT) rival, sales growth in stores and online, because it has increased price declines and offered enlarged grocery assortments.
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In addition, Target has issued what is equivalent to a profit warning in the first quarter in the midst of Trump fresh prices on goods from China and low February sales. The shares finished the session down 3% to $ 117.13.
At Close: March 10 at 4:03 p.m.: 00 pm
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Walmart published advice over a year for a whole year, several weeks ago, pinning the blame on pricing uncertainty. The Best Buy (BBY) shares were hammered by 13% today, because it warned the tariff effects on the results.
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Target refused to share specific directives on the profits of the first quarter, but CEO Brian Cornell hinted at the call of the profits that a slow February reflected discomfort on the prices. Yahoo finance data show that Wall Street analysts are looking for a slight improvement in profits from one year to the next.
He also told analysts of the appeal he would move away from the provision of quarterly advice, which will probably not contribute to bringing back the case of bull on the stock.
“Net-Net, we believe that Target manages as well as in a difficult consumption environment where discretionary expenses are slowly improving compared to previous years,” said Stifel analyst Mark Astachan, in a customer note.
Astachan has reduced its target profits estimates and brought back its price as a course to $ 130, against $ 145.
Target shares are down 12% for 24% by 24% in the past year. Over the past five years, Target actions have dropped by 31% compared to a 12% lead for the S&P 500 (^ GSPC).
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Net sales of the fourth trimester: -3.1% from one year on the other to $ 30.9 billion, against estimates for $ 30.67 billion
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Gross beneficiary margin: 26.2% against 26.6% a year ago, against estimates for 25.5%
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Profit diluted by action: Led 19% from one year to the next to $ 2.41, against estimates for $ 2.26 (guidance: $ 1.85 to $ 2.45)
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Comparable sales: In addition to 1.5% of one year on the other, compared to 1.18% estimate (comparable sales last year dropped by 4.4%; Walmart US declared a gain of 4.6% to its fourth quarter.)
