Target Faces Third Straight Sales Decline As Value-Focused Shoppers Cut Back

Benzinga

Target posted weaker Q3 sales and cut its full-year outlook as customers focused on value. Comparable sales fell for a third straight quarter, and traffic declined, prompting the incoming CEO to push merchandising upgrades, store improvements, and new AI tools to revive growth.

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

00:02Target reported weaker third-quarter sales and lowered its full-year profit outlook as

00:06customers cut back and prioritize value, according to CNBC. Target reported adjusted earnings of

00:12$1.78 per share versus $1.72 expected in revenue of $25.27 billion compared with $25.32 billion

00:22expected. Comparable sales fell 2.7%, marking the third straight quarterly decline,

00:28while traffic dropped 2.2% and average transaction size slipped 0.5%.

00:34Target maintained its forecast for a low single-digit sales decline in the holiday quarter

00:39and now expects full-year adjusted earnings between $7 and $8 per share.

00:44Target's sales have stagnated for four years due to tougher competition,

00:48weakened merchandising and store experience, and a customer boycott following cutbacks to its

00:52diversity and inclusion programs. Incoming CEO Michael Fiddlekey said the company is investing

00:57in merchandising store improvements, and AI tools such as Target TrendBrain and a new

01:03ChatGPT shopping integration to revive growth. For all things money, visit Benzinga.com.

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