Target blames weather for soggy results
Like rival Wal-Mart, it's pointing the finger elsewhere for its problems while other retailers are coping just fine.
Target earned $498 million, or 77 cents a share, down 40% from $697 million, or $1.04 a share, a year earlier. Sales rose 1% to $16.7 billion. The results lagged analysts' forecasts for profit of 84 cents a share and revenue of $16.8 billion, according to Bloomberg. Worse, Target also cut its earnings outlook for the year.
Target CEO Gregg Steinhafel said the company was "disappointed in our first quarter performance," which he attributed to soft sales in apparel and other weather-sensitive products. He also stressed confidence in Target's strategy, including plans to expand in Canada.
While it's true that cool spring weather doesn't put consumers in the mood to buy summer apparel and that discretionary income is getting squeezed by higher Social Security taxes, that can't be the whole story because other retailers facing the same issues are doing fine.
TJX (TJX) the parent of TJ Maxx and Marshall's, reported on Wednesday that net income rose to $604.8 million, or 82 cents a share, as sales increased 7% to $6.2 billion. The company's earnings guidance was below expectations. TJX's chains have 1,943 locations, and the retailer expects the market to support 2,400 to 2,600 stores, 100 to 200 more than it earlier forecast.
Kohl's (KSS) profit was $147 million, or 66 cents a share, versus $154 million, or 63 cents a share, a year earlier. That beat the 57 cents a share analysts had forecast. Sales fell 1% to $4.2 billion, slightly lagging the $4.26 billion analysts had expected. Nonetheless, Wall Street pushed up the discount retailer's share price in early trading.
Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr.
Target is overpriced and the stores in my area are set up poorly for shopping convenience.
Not to mention they think they can be all pushy in their political views by degrading those who don't believe with their stances. I'd rather shop somewhere that just wants to sell stuff.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The major averages began the new trading week on a slightly lower note with small caps leading the weakness. The Russell 2000 shed 0.3% while the S&P 500 slipped less than a point with six sectors ending in the red.
Equity indices began the day in negative territory with only the Nasdaq (-0.04%) making a very brief appearance in the green. After sliding through the first hour of action, the major averages reversed and spent the remainder of the session climbing off ... More
More Market News
Like many companies this winter, the fast-food giant blamed a drop in same-store sales on the weather. But could its problems be bigger than a snowbank?
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'