Target sales weakness could be warning sign ahead of tomorrow's retail sales report
Shares down in the pre-market
Shares of Target are down 6.7% in the premarket after reporting that same-store sales in November and December were up just 1.4% compared to +3.8% expected by analysts.
The company said apparel and beauty were up 5-7% but electronics (-6%), toys (flat) and parts of its home items business (-1%) were soft.
"While we knew this season was going be challenging, it was even more challenging than we expected," said CEO Brian Cornell.
The news catches the market wrong-footed. Shares of target rallied 82% over the past year and the stock hit an all-time high of $130.24 on Dec 20.