Target will report fiscal third-quarter earnings on Wednesday and offer the latest clues on how the holiday season is shaping up for retailers, as the company tries to woo deal-hunting shoppers.
Here’s what the discounter is expected to report, according to a survey of analysts by LSEG:
- Earnings per share: $2.30
- Revenue: $25.90 billion
The big-box retailer, which is known for its cheap chic spin on clothing, home goods and other discretionary merchandise, has struggled to attract steady foot traffic and higher sales. Shoppers have been more selective about spending after cumulative years of higher food and housing prices.
To woo those price-sensitive consumers, Target announced in May that it would cut prices on about 5,000 frequently purchased items, including diapers, bread and milk. It made another round of reductions in October, saying it would slash prices on more than 2,000 items during the holiday season, including cold medicine, toys and ice cream.
Target said it will have lowered prices on more than 10,000 items this year by the end of the holiday season.
Yet those price cuts haven’t been enough to significantly lift Target’s performance. The discounter struck a cautious note in August, even as it beat Wall Street’s quarterly expectations. The company said it expects comparable sales, a metric that tracks sales online and at stores open at least 13 months, to be in the lower half of its previous range of flat to up 2% for the year. Target raised its full-year profit outlook in August, saying it anticipates adjusted earnings per share to range from $9 to $9.70.