Target Misses Their Own Expectations

Seems like only minutes after hitting the "publish" button on my Wal-Mart (WMT) post, Target (TGT) made my point.

Target Thursday reported that its net retail sales for the four weeks ended August 2, 2008 increased 4.7 percent to $4,566 million from $4,363 million for the four weeks ended August 4, 2007. On this same basis, July comparable store sales declined 1.2 percent.

“Our comparable store sales performance in July was near the low end of our -1% to +1% planned range,” said Gregg Steinhafel, president and chief executive officer of Target Corporation.

Uh, Greg. Let's do a little basic math here. -1.2% is actually "greater than" -1.0% remember this little sign, -1.2 > 1.0? I think it was from "Intro to Algebra"? It is not "near the low end" Greg, it is officially "past it".

Analysts expected a decline of -.4% once again proving the fruitlessness in listening to them. The news here is not that Target missed analysts expectations just as it was not in the case with Wal-Mart. The point here is that Target missed their own expectations meaning things for them are even worse than they thought they were. Perhaps the worse news is that their CEO does not seem to realize they missed it.

Year to date, Target comp sales are down .6% vs a 4.6% rise at this time last year. That, is not good no mater what the expectations.

 

Comments

[Jonhpd:]

Just for your information... -1.2 < -1.0 Your point is taken, but YOUR algebra skills are lacking.

2008 Aug 08 08:19 PM

[emann1194:]

I would like the stock market slam tgt one time for missing estimates instead of making excuses. WMT can't fart without everyone getting in their licks. Take a look at what WMT is doing for the poor countries in the world and making them better. That was Mr. Sam's last wish to make everyone in the world's life better. Before the Labor and Dem's slam me, please move to the 'left coast' with Arnold and have a nice life.

2008 Aug 19 02:44 PM