Note they said the cuts are small. I can tell you from personal knowledge they include key positions related to new store development. I will be shorting on the next bounce.
Maybe, but it appears the brakes have been applied to new store growth (new revenue generation). It takes a lot of planning, real estate acquisition, deal making, local political smoozing, permit acquisitions, engineering, etc., to get a new store built. Obviously you can't pull someone off register 4 to take care of that.
CNBC - Target–The battered retailer reported second quarter profit of 78 cents per share, excluding certain items, missing estimates by one cent. The company also cut its earnings forecast for the year, with the company's CFO saying that although Target hasn't been performing up to expectations, it is seeing signs of improvement.
Thats a nice move today!
Target (TGT) beat analyst estimates for earnings in the third quarter and saw better than expected growth in sales at stores open at least a year, the company reported Wednesday.
The company said it earned $352 million in the third quarter, or 55 cents a share. That compares with $341 million, or 54 cents a share, in the same period a year ago.
Target shares are up 6.35% to $71.80 in morning trading.
Revenue rose 2.8% to $17.73 billion, up from $17.26 billion a year ago.
Wall Street analysts were expecting earnings of 47 cents a share and sales of $17.53 billion, according to FactSet.
A key retail metric, sales at stores open at least a year, rose 1.2%, helped by a more than 30% jump in digital sales. Target expected sales to be flat or up 1%. Comparable store sales in Canada rose 1.6%.
"We're encouraged by the improving trend we've seen in our U.S. business throughout the year, and our fourth quarter plans are designed to sustain this momentum," CEO Brian Cornell said in a company statement. "The entire company is energized as we approach the peak of the holiday shopping season, and we are looking forward to delivering an outstanding store and digital experience to our guests."