UPDATE 3-Target blames Canada and cautious shoppers as it warns on year

Wed Aug 21, 2013 1:28pm EDT
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

* Adjusted earnings 97 cents/share vs estimate 96 cents

* Total sales, same-store sales miss expectations

* Canada to cost 82 cents/share vs prior view 45 cents

* Shares fall as much as 4.1 percent to lowest level since March

By Jessica Wohl

Aug 21 (Reuters) - Target Corp warned of weak annual sales and profits on Wednesday as U.S. shoppers remain cautious and its new Canadian stores are not doing as well as anticipated.

Shares of Target fell as much as 4.1 percent to $65.14, their lowest level since March, and were down 3 percent in later trading.

The chain, which competes against Wal-Mart Stores Inc and other discount retailers with a mix of basic goods, apparel and accessories, posted a second-quarter profit just ahead of expectations while sales missed estimates.

Target said this year's profit should come in at the low end of already reduced expectations and that sales at stores open at least a year should grow just 1 percent rather than 2 to 2.5 percent, as U.S. shoppers remain cautious in the face of ongoing household budget pressures such as higher taxes and gasoline prices.   Continued...