Target cuts outlook in 'difficult' environment
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Target cut its profit outlook and comparable-store sales amid stiffer competition and its own stumbles in areas like groceries.
The discounter's second-quarter net income fell nearly 10 percent. It also reported sales at stores open at least a year fell 1.1 percent, reversing six straight quarters of gains.
The company now expects earnings this year in the range of $4.80 to $5.20, lower than the $5.20 to $5.40 it had projected earlier.
Same-stores sales could fall as much as 2 percent in the second half of the year, Target said.
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Net income for the quarter was $680 million, or $1.16 cents per share. That compares with $753 million, or $1.18 per share in the year-ago quarter.
Adjusted per-share earnings were $1.23, easily beating projections of $1.14 from Wall Street, according to a survey by Zacks Investment Research.
Revenue fell 7.2 percent to $16.2 billion.
Target Corp. is undergoing a reinvention spearheaded by CEO Brian Cornell, who took over the helm in August 2014.
