And I thought the economy was booming….
Target’s chief executive, Brian Cornell, said Tuesday the retailer will cut several thousand jobs within the next two years as part of a $2 billion cost-savings plan.
The Minneapolis-based company also announced 2015 guidance of $4.45 to $4.65 adjusted earnings per share. Wall Street expected Target’s guidance at $4.50 adjusted earnings per share.
Target also expects digital sales to increase 40 percent and same-store sales between 1.5 and 2.5 percent, with modest improvement in gross margins and expense rates. It projects overall 2015 sales to grow between 2 and 3 percent.
The company’s stock closed at $78, or up 0.41 percent.
For 2016, Target expects earnings per share to increase 10 percent and a 5 to 10 percent dividend growth rate.
Last week, the retailer reported earnings of $1.50 per share on revenue of $21.75 billion, beating Wall Street’s expectations of $1.46 per share on $21.63 billion in revenue. The company’s total U.S. sales also grew by 1.9 percent in 2014.
Target also increased its 2015 first-quarter guidance to 95 cents to $1.05 adjusted earnings per share, up from 92 cents per share the same time last year.
“We’re seeing early momentum in our efforts to transform Target, and our team is entering the new fiscal year with a singular focus on continuing to differentiate our merchandise assortment and shopping experience while controlling costs by reducing complexity and simplifying the way we work,” Cornell said in the company’s latest earnings report.
Target has also reportedly zeroed in on seven grocery categories, including yogurt and beer, to attract younger shoppers. In other words, it will be less reliant on products from General Mills, Kraft Foods and Campbell Soup, Reuters said in a report last week that cited The Wall Street Journal.
These big box stores are getting hammered by the globalization thing. They’re just too damn big, they have to downsize. They got caught with their pants down.
I agree Mark, these “Mega Malls” and big box retailers are going to “drop like flies” as consumer spending grinds to a screeching halt. Wages have not kept up with the cost of living and now we got a bunch of Mexicans up here suckin, on the Social Security Teat along with all the other benefits we American Nationals don’t qualify for. It’s gonna get crazy this year Mark and it could literally happen overnight.
Hey, I just went to grab a bottle of Listerine and a bottle of vitamin supplements and realized that I have to work for two hours (minimum wage) just to get those two items. Also, I’m noticing that the cost of a fast food meal (which I try to stay away from) is almost the same amount as minimum wage. Disgusting.
And people don’t think we are in a depression? The value of our dollar is less than the amount needed to buy something even small. It’s insane!
““We’re seeing early momentum in our efforts to transform Target, and our team is entering the new fiscal year with a singular focus on continuing to differentiate our merchandise assortment and shopping experience while controlling costs by reducing complexity and simplifying the way we work,” Cornell said in the company’s latest earnings report.”
In other words, you’re losing business and money and so therefore you need to lay people off. That’s all you had to say. There’s no shame in telling the truth, Brian. 😉
Man did Target get hammered in Canada. They lost a couple of billion and were gone in 2yrs. Even their closing out sale was no sale. Good luck Brian your are going to need it.
When you destroy the middle class stores like these start downsizing and eventually disappear. The rich don’t shop at Target. And the poor don’t have enough money to keep the stores going. A ton of stores and restaurants prospered because of our strong middle class. But the POS’s in Washington DC have to have everything for themselves and heck with everyone else. Well when you create a system like that everything starts crumbling. Sad thing is it doesn’t need to be that way.