Target Lowers Forecast on Sales Slump, Canadian Losses

[InfoSec News <alerts () infosecnews org>]

http://www.bloomberg.com/news/2014-08-20/target-lowers-its-forecast-as-sales-slump-canadian-losses-widen.html

By Renee Dudley
Bloomberg.com
Aug 20, 2014

Target Corp. (TGT), still struggling to rebound from last year’s hacker 
attack, cut its forecast for the year as slumping sales and a money-losing 
push into Canada take a toll on profit.

Target now expects full-year earnings of $3.10 to $3.30 a share, excluding 
some items, down from a previous forecast of as much as $3.90, according 
to a statement today. Analysts had predicted $3.44, the average estimate 
compiled by Bloomberg.

The bleaker forecast follows a preliminary earnings report on Aug. 5 that 
fell short of expectations, signaling that the company’s comeback effort 
will be slow going. Target has been struggling to boost U.S. traffic, 
repair its botched Canadian expansion and regain shoppers’ trust after 
hackers stole millions of customers’ data last year. The retailer hired 
PepsiCo Inc. (PEP) executive Brian Cornell as its new leader last month, 
following the ouster of Gregg Steinhafel in May.

Target is relying heavily on sales promotions to entice shoppers, but it 
doesn’t seem to be working, said Brian Yarbrough, an analyst at Edward 
Jones & Co. in St. Louis. That means Target is squeezing margins without 
much benefit.

[...]

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