Target shares plunge after sales miss estimates

Reuters ^ | 05.18.2016 | Nandita Bose

[dware]

Target Corp gave a cautious outlook on Wednesday after reporting a lower-than-expected increase in quarterly sales at established stores because of unseasonable weather and weaker demand for electronics and groceries.

Shares of the company fell as much as 11 percent, their biggest intraday decline since December 2008, as investors shrugged off higher-than-expected earnings. The stock was down 7.1 percent at $68.27 in the early afternoon.

[Theo]

[Palio di Siena]

their earnings were up in spite of sales being off.
I think the reason for the stock dropping is that those who are holding target stock are selling the stock. so it’s supply and demand.

[Leaning Right]

How does Target's recent sales figures compare to those of other retailers (WalMart, etc.)? That would tell you if the boycott has teeth or not.

[Dick Bachert]

I'd bet the ranch that THIS is most of the reason for the decline in Target's business!

Although this – ahh – person spends more time at Walmart, if he finds his way to Target, THEIR policy allows him into the bathroom with YOUR daughter. At least, so far as I know, Wally World hasn't caved – but it's still early!

[dware]

because their earnings sucked.

Because 2nd Amendment advocates stopped supporting them a while back, and now normal, decent Americans are not supporting them either.

[bert]

The reason is that the numbers reported were for the previous quarter before the very recent flap over bathrooms

the nascent boycott had no effect either

[Paladin2]

Shoppers could have been forward looking....

[fr_freak]

These are quarterly earnings. Targets quarter runs Feb-Apr. They didn’t even announce the policy until the end of April.

That may be true, but stock sales often follow perception, so if the investing public perceives the new policy and resulting boycott as affecting stock price negatively, we could see a drop simply as a result of that.

[God luvs America]

we usually purchase a nice large gift certificate to Target for my mother as a Mothers Day gift...not this year..i did my part...

[bigdaddy45]

I’m not doubting that the boycott will have an impact. I won’t even go into a Target now. But their stock dropped because they had a big earnings miss. The boycott impact, if there is one, will start to hit now. But analysts will never mention it because they don’t recognize “boycotts” as something they can predict. Quite frankly, their heads are too firmly stuck in the sand.

Next quarter should be interesting.

[Cowboy Bob]

reporting a lower-than-expected increase in quarterly sales at established stores because of unseasonable weather and weaker demand for electronics and groceries.

Two conclusions to draw: Not all Target stores have roofs...and people have decided to stop eating.

[MeganC]

My homophobic money is afraid to go to Target so I take it elsewhere.

[bigdaddy45]

Is that why their stock was almost at an all time high a few months back?

The gun boycott has had a minimal impact at best. The tranny toilet impact will be considerably larger.

[rdcbn]

Unless they are playing accounting games with timing recognition of revenue to try to hide a revenue hole in the next quarter due in part to revenue hits from their transgender policy

[Jedidah]

If these are first quarter stats, the trans bathroom issue probably isn’t a factor. That would show up in the second quarter.

[Walkingfeather]

not a word

[ConservativeWarrior]

You know what’s interesting - haven’t seen any articles about the sexual deviants making demonstrations at Target over the bathrooms.

Like there wasn’t a parade and fanfare as a dozen or so tranny’s used the women’s room.

Or did I miss the event coverage?

Makes you kind of wonder what the real *need* was for Target to do this.

[New Jersey Realist]

Targets quarter runs Feb-Apr. They didn’t even announce the policy until the end of April. Any impact won’t show up until the next earnings report.

---

Good, hopefully things will get much worse for them. What were they thinking? Transgenders comprise a handful of people so their business plan is to appease them and forget about the other millions. What stupidity!

[DungeonMaster]

[Salvation]

Obama’s legacy — men in women’s restrooms.