Target Dips on Murky SSS Outlook
NEW YORK – Target Corp.’s shares fell to a 52-week low at one point on Tuesday after the discount retailer trimmed its same-store sales expectations for the current month.
Target said the comparable-store sales for July are likely to finish up between 3 and 4 percent, slightly below the 4 to 6 percent increase earlier forecast.
Shares bottomed out at $44.70 during intraday trading, their low-water mark during the past 12 months, but later rose to finish the New York Stock Exchange session at $45.53, down $2.02 or 4.25%.
Also on Tuesday, A.G. Edwards analyst Bob Buchanan downgraded Target, J.C. Penney and Abercrombie & Fitch to “hold” from “buy,” but based the move on historic inventory turnover trends rather than the same-store sales guidance provided by Target late Monday.