BUZZ-Target reverses course after maintaining profit forecast

Updates

Shares of Target TGT.N reverse course to slip ~3% to $130 premarket

Co maintains its Q4 adjusted EPS forecast of between $1.85 to $2.45, despite raising comparable sales growth expectation to 1.5% from prior expectations of flat growth

Target's margins are under pressure from rampant price cutting to keep up with value-conscious consumers with limited budgets for non-essentials

"I think that given the strength in discretionary sales, you can make the assumption that profitability should come out okay," says Telsey Advisory Group analyst Joseph Feldman

Target had previously forecast weaker-than-expected sales and profit for Q4 in November on weak consumer spending on non-essentials, sending shares down ~22%

Co also maintains annual adjusted EPS forecast of between $8.30 and $8.90, in line with analysts' estimates- data compiled by LSEG

Separately, co announces appointment of Adrienne Costanzo as chief stores officer, Prat Vemana as chief information officer and product officer, and Sarah Travis as executive vice president and chief digital and revenue officer

Target shares fell 5% in 2024

(Reporting by Neil J Kanatt in Bengaluru)

((Neil.JKanatt@thomsonreuters.com;))