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Target will report its results before the bell. Here’s what to expect

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The Target logo is seen on its 42nd Street store in Times Square, New York.

Deb Cohn-Orbach | UCG | Universal Images Group | Getty Images

Target will release its holiday quarter results and outlook for the coming year on Tuesday.

Here’s what Wall Street analysts surveyed by LSEG, formerly known as Refinitiv, are forecasting for the company’s fourth quarter:

  • Earnings per share: $2.41 expected
  • Revenue: $31.83 billion expected

Target, which sells many discretionary products such as clothing and home goods, has seen comparable sales decline for two straight quarters. The industry measure, also called same-store sales, strips out the effect of store openings, closings and renovations.

The company previously said it expected this trend to continue, even through the holiday season. It said in November that it expected comparable sales to decline about 5% in the fiscal fourth quarter and adjusted earnings per share to range from $1.90 to $2.60.

To attract value-oriented shoppers, the chic-on-price retailer has focused on low prices and more frequent categories, such as food and beauty. During the holiday season, for example, the company focused on wide assortment of toys and gifts under $25. Last month, it launched a new low-cost private label called Dealworthy, including items such as socks, paper towels, laundry detergent and more, with most items costing less than $10.

Compared to its large-scale rival Walmart, Target faced another challenge: Grocery products are a smaller part of its business. The category attracts steadier foot traffic and sales, even as shoppers cut back on purchases in other areas. Grocery generates about 20% of Target’s annual sales, compared to nearly 60% of Walmart’s annual sales in the United States.

Some Target stores are also losing another traffic driver: pharmacies. CVS Health declared in January that he close certain locations in Target stores, part of a broader plan by CVS to reduce the number of its stores. CVS and Target declined to say how many pharmacies would be closed.

Target will hold a financial meeting with investors on Tuesday in New York.

As of Monday’s close, Target shares were up nearly 6% year to date. That’s still below the S&P 500’s gains of about 8% over the same period. Target shares closed Monday at $150.49 apiece, bringing the company’s market value to nearly $70 billion.

This is breaking news. Please check again for updates.

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