Target Sales Slip As Shoppers Shift To Rival Walmart

Benzinga

Target reports Q3 results Wednesday as prolonged shutdown-driven weakness in discretionary spending and market-share losses to Walmart continue to weigh on the business. Analysts expect a 2% drop in comparable sales, flat revenue, and lower EPS as the incoming CEO cuts layers and trims prices to regain competitiveness.

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00:00It's Benzinga bringing Wall Street to Main Street.

00:02Target will report third quarter results on Wednesday, with analysts expecting ongoing

00:07strain as Americans cut discretionary spending during the extended government shutdown,

00:11according to Reuters. Analysts said Target continues to lose market share to Walmart

00:16as inventory issues, staffing shortages, and stalled e-commerce efforts weigh on performance.

00:22Comparable sales are estimated to fall 2% and revenue is projected to hold flat at nearly

00:27$25.33 billion, while earnings per share are expected to decline to $1.72.

00:34Target's credit and debit card sales fell 2.8% during the quarter as middle-class shoppers

00:40shifted more of their grocery and essentials spending to Walmart. The company's stock has

00:45dropped 41% this year and trades at a steep discount to its 10-year average. Incoming CEO Michael

00:51Fiddleke has begun cutting corporate layers, announcing 1,800 job cuts and introducing

00:57price cuts on 3,000 household items to improve competitiveness. For all things money, visit

01:02Benzinga.com.

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