Target earnings (TGT) R3 2023

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Target department store in North Miami Beach, Florida, on May 17, 2023.

Joe Radle | Getty Images

Target will report fiscal third-quarter earnings on Wednesday, as the company tries to claw its way back from a string of disappointing results and high-profile setbacks.

Investors will be listening for any signs that the retailer’s sales are turning around as Target prepares for the crucial holiday season.

Here’s what Wall Street expects for the company for the three months, based on a survey of analysts by LSEG, formerly Refinitiv:

  • Earnings per share: $1.48 expected
  • Revenue: $25.24 billion expected

Sales have slowed across the retail industry as consumers feel the pain of high prices and choose to spend on experiences instead. But Target, which sells a heavier mix of clothing, home goods and impulse buys than some rivals, has come under particular pressure.

In addition, he has faced his own challenges. Target received a blowback for a collection of items for Pride month, a celebration of LGBTQ+ people and issues, which it has sold for more than a decade. It was hit by higher levels of organized retail crime. And it recently closed nine stores in cities, blaming the closures on theft and threats of violence.

The Minneapolis-based company cut its full-year forecast in August, saying it expects comparable sales to decline by about a mid-single-digit percentage and earnings per share between $7 and $8.

Target’s stock has suffered as sales stagnate. Shares of the company have fallen almost 26% this year, with their value more than halved since the height of the Covid pandemic.

Target CEO Brian Cornell: Consumers are pulling back, even on groceries

In a CNBC interview with Becky Quick that aired earlier this month, Target CEO Brian Cornell said the company’s discretionary sales have declined for seven consecutive quarters, in both dollar terms and units. He said customers are buying less clothes and toys, and even less groceries.

But he got a good impression of the main holiday season. He said the company has seen sales around “seasonal times,” such as Halloween, Mother’s Day and summer holidays – a boost that could help as Black Friday, Thanksgiving and Christmas approach.

Home depotTuesday’s quarterly report also gave cause for optimism. The home improvement retailer expected year-over-year sales to decline, but said the worst of inflation is over.

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