BUZZ-Target falls after maintaining profit forecast

Updates

Retailer Target's TGT.N shares reverse premarket gains to slip as much as 4.9% to $127.92

Company maintains Q4 adj EPS forecast of between $1.85 and $2.45

Target's margins are under pressure from rampant price cutting to keep up with value-conscious consumers

Company raises comparable sales growth forecast to 1.5% from prior expectations of flat growth, helped by strong apparel and toy sales during holiday season

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

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

Company maintains annual adj EPS forecast of between $8.30 and $8.90, in line with est - LSEG

Separately, company names 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's shares fell 5% in 2024

(Reporting by Neil J Kanatt in Bengaluru)

((Neil.JKanatt@thomsonreuters.com))