Shoppers outside the target store on November 26, 2024, before Black Friday in Clifton, New Jersey.
Victor J. Blue | Bloomberg | Getty Images
Target The fourth-quarter earnings will be reported on Tuesday and show investors whether it is driving disposable goods sold at higher prices, a major currency maker for retailers.
According to LSEG’s consensus estimate, here are the analysts’ expectations for large stores:
- Earnings per share: $2.26
- income: $30.8 billion
The target is expected to report a decline in revenue after the company proposed its fourth-quarter sales forecast in January, but Leave its profit prospects It remains unchanged after cutting in November.
Retailers presented comparable sales guidance in January after seeing steady flows during the critical holiday shopping months, but their decision to maintain profit guidance showed that it relies on deals and discounts to drive sales, which is expected to put pressure on profit margins.
Target has long tempted shoppers to have extensive discretionary goods and has been striving to win consumers as it continues to inflation, high interest rates and online discounts and competitors’ continued inflation, high interest rates and fierce competition. Walmart. The hybrid transformation hurts the goal, it seems More related to execution Greater macroeconomic problems. With disposable sales lagging behind Target, Walmart saw strength in the category and won the win More and taller shoppersin times of economic softness, they tend to be more resilient.
In November, the goal Cut its profit guidance After posting its biggest revenue miss in two years. At the time, it blamed the cost of preparing for a short port October strikebut most of the pressure comes from the sale of disposable goods, with higher profit margins than essentials such as groceries and toothpaste.
The company says it has been able to drive the power when it offers new compelling merchandise like fresh workout gear, pet accessories or the taste of seasonal food.
For example, when Target started selling leggings in all sports, customers appeared and spent, the bondage appeared in bright colors and glittering ways for $25, Chief Commercial Officer Rick Gomez told CNBC in an interview last month. They also responded well when the target redesigned the bras and pajama line Oden.
“When we have a novel style, trend at affordable prices, consumers are willing to shop,” Gomez said.
Now, Target hopes to build on this momentum and turn to new partnerships to help drive sales. At the end of February, Target said it was working with the champions, Warby Parkerand both brands will appear in the Target store and online.
As part of it Year-round deals with championsTarget will carry an exclusive range of sportswear designed for leisure and life more than suitable fitness clothes. With Warby Parker, Target will open five shopping stores and start offering glasses-branded products online, with plans to launch even bigger next year.
These partnerships are designed to attract shoppers, bring new customers into and compete with their competitors, but it may take some time before the fruit begins to bear.
Even though the agreements were announced at the beginning of the year, they will not officially launch until the second half of 2025.
