Plus   Neg

Target Withdraws Q1, FY20 Outlook, Suspends Share Buyback - Quick Facts

Providing a business update in response to the impact from novel coronavirus (COVID-19), Target Corp. (TGT) announced Wednesday that it is withdrawing its prior guidance for sales, operating income and earnings per share for the first quarter and full year 2020, due to the highly fluid and uncertain outlook for consumer shopping patterns and government policy amid the coronavirus pandemic.

The retailer is also suspending share repurchase activity in the current environment, while it continues to invest in its business and team.

However, the company has been experiencing unusually strong traffic and sales, particularly in its stores and same-day services, as guests rely on Target for essential items like food, medicine, cleaning products and pantry stock-up items as the COVID-19 crisis has evolved.

For the month of February, total Company comparable sales increased 3.8 percent. Month-to-date in March, overall comparable sales are more than 20 percent above last year.

Additionally, the company said it now anticipates about 130 remodels in 2020 under its remodel program, down from the previous expectation of about 300. The company also now expects to open 15-20 new small format stores in 2020, rather than the 36 previously announced. This will allow projects already underway to be completed, and move the remaining projects into 2021.

In addition, the effort to incorporate fresh grocery and adult beverages into the Company's Drive Up and Order Pickup services is temporarily on hold.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
JPMorgan Chase CEO Jamie Dimon said it expects the bank's earnings to be "down meaningfully" in 2020 due to the disruptions created by coronavirus pandemic. He also noted that the U.S. was not adequately prepared for the pandemic. In his annual letter to the company's shareholders, Dimon said that the bank's board may consider suspending the dividend in an extremely adverse scenario. The U.S. Food and Drug Administration launched a national effort to facilitate the development of blood-related therapies to combat the ongoing coronavirus (COVID-19) pandemic. The FDA is focused on two investigational therapies derived from human blood called convalescent plasma and hyperimmune globulin, which are antibody-rich blood products made from blood donated by people who have recovered. Gilead Sciences Inc. said it is donating its existing supply of 1.5 million individual doses of remdesivir, its investigational medicine for coronavirus or Covid-19. The drug, which is yet to get regulatory approval, is available for compassionate use, expanded access and clinical trials to treat patients with the most severe symptoms of COVID-19.
Follow RTT