Target reports declining revenue in first quarter

Target Corp. shares fell the most in more than seven years after quarterly sales missed analysts’ estimates and the discount chain delivered a disappointing forecast, adding to evidence that the biggest USA retailers are suffering from a slump.

However, the company noted that the increase in comparable sales was more than offset by the impact of the sale of the pharmacy and clinic businesses. A decline in same-store sales would be the first for Target in almost two years. The Street is now looking for full-year earnings of $5.26 per share.

Same-store web sales rose 23% in the quarter and the retailer found particular success in its Style, Baby, Kids, and Wellness categories, which saw sales grow more than three times as much as the company average, the company said. Target’s disappointing results also dragged down shares of

In his latest move, Mr. Cornell on Monday hired Nordstrom veteran Mark Tritton as Target’s next chief merchandising officer, filling the position after its former top merchandiser left last summer. They’re nothing like the stellar results from Home Depot or TJX Companies, but not the worrying woes seen by Macy’s, Kohl’s, or J.C. Penney, either.

Overall revenue in the quarter dropped 5.4 percent to $16.2 billion, a reflection mostly of the fact that pharmacy sales are no longer included in its results since the sale a year ago of that part of its business to CVS Health.

The Minneapolis-based company’s shares dropped 7.4 per cent to $68.15 (U.S.) in premarket trading. This was modestly lower than the analysts’ predictions of $16.31 billion. It reported earnings of $1.29 a share last quarter, beating the average analyst estimate of $1.19.

Wall Street is expecting the retail giant to post earnings per share of $1.19 on revenue of $16.31 billion, according to a Thomson Reuters consensus estimate.

Cornell said e-commerce sales were a “bright spot” last quarter.

The company said it had $1.29 in earnings per share (EPS) on $16.20 billion in revenue.

Comparable sales growth for the quarter was 1.2 percent, driven by growth in both traffic and basket.