UPDATE 3-Target cuts full-year forecast after weak first quarter

Wed May 22, 2013 11:06am EDT
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* Adjusted EPS 82 cents vs Street view 85 cents

* Revenue $16.71 billion vs view $16.78 billion

* Shares down more than 3 percent

By Jessica Wohl

May 22 (Reuters) - Target Corp cut its full-year profit forecast on Wednesday while turning in a weak first quarter with disappointing sales, as a chilly start to spring kept shoppers from buying seasonal items like clothing.

Target warned in April its first-quarter results would be weaker than anticipated, and its performance was even worse than revised Wall Street expectations due to the cool weather and the impact of higher payroll taxes on spending.

Shares of Target fell 3.6 percent to $68.70.

First-quarter sales at stores open at least a year fell 0.6 percent, while analysts targeted a 0.03 percent decline, according to Thomson Reuters I/B/E/S. Back in April, Target forecast same-store sales would be about flat versus its previous outlook of flat to up 2 percent.

"This is Target's weakest quarterly same-store sales performance since the Great Recession year of 2009," said Sandy Skrovan, U.S. research director at Planet Retail.   Continued...