Target Same Store Sales In The Two Quarter, The First Fall In Two Years Will Reduce Sales Expectations.

TargetCorp. (NYSE:TGT) Taghit department store in the first two quarters of the first quarter since the first 2014 quarter of the first time since the same store sales retrogression, lowered the annual profit forecast, resulting in the group's share price in the trading session before Wednesday's sharp 7% decline.

In the two quarter ended July 30th, TargetCorp. Taghit

Same store sales fell 1.1% year-on-year, a slight decline in Consensus Metrix's forecast of 1% and a 2.2% decline in trading volume.

Brian Cornell, the chief executive who led the group's strong recovery from the 2013 data leakage, blamed the "difficult retail environment" for some of its financial results and said that it would be prudent to reduce the same store sales in the second half of this year.

He also said that the group had the right strategy to restore passenger flow and sales growth.

along with

The competition is becoming more and more intense.

The demand for electrical appliances is also weakening. Now the Group expects sales in the same store in the second half of this year to fall by 0%-2% compared with the same period last year, and the EPS target for the whole year will also be reduced from 5.20-5.40 to 4.80-5.20 dollars.

Brian Cornell revealed in the analysts' conference call after the earnings report that in addition to the biggest challenge of passenger flow decline, sales of Apple Corp (AppleInc.) NASDAQ:APPL products fell by 20% during the period, dragging down double-digit decline in electrical business.

Besides, the sales of grocery business and CVS pharmacy business of 1/5 are also disappointing.

Better performance is still the core category of children's clothing, baby, women's clothing and health, while sales in the same store grow by 3%.

Online sales rose 16% year on year, accounting for 3.3% of the group's total sales, while the growth rate in the same period last year and the first quarter reached 30% and 23% respectively.

In the two quarter, Target Corp. sales in Taghit totaled $16 billion 169 million, less than $16 billion 180 million in the market expectations, representing a 7.2% decrease compared with $17 billion 427 million in the same period last year.

Net profit fell by 9.7% to 680 million US dollars, and the diluted earnings per share dropped from $1.18 to US $1.16. Adjusted diluted earnings per share were US $1.23, and the market was expected to be US $1.12.

Gross profit margin was 31.3%, 40 basis points higher than the same period last year.

For the current three quarter, the group is expected to record adjusted diluted earnings per share of US $0.75-0.95, and the market expects us $0.95.

At the time of the deadline, Target Corp. (NYSE:TGT) fell by 6.92% to $70.26 at 9:50AM.