15 Nov Target Stocks Tumble Due to Bleak Christmas Season Forecast
Target Corporation stock price fell over 9% early Wednesday morning after the company reported 3rd quarter 2017 earnings.
The latest earnings report could indicate the retail giant is struggling to gain foot traffic in its stores. 3rd quarter 2017 comparable sales increased 0.9% from the previous year. However, according to Target’s report, “comparable digital sales contributed 0.8 percentage points to comparable sales growth.” For reference, comparable sales from the 3rd quarter 2016 declined 0.2%, which accounted for an increase of 0.7 percentage points from comparable digital sales.
What does this all mean in regards to foot traffic? Essentially, Target’s comparable sales numbers appear buoyed by some growth in digital sales. Furthermore, in-store sales have not recovered from a disastrous 2016 when millions decided to shop #AnywhereButTARGET after Target publicly advertised men could use women’s bathrooms and changing rooms based on how they feel, not biological sex. Not surprisingly, customers would rather not physically go to retail locations that create such an unsafe environment.
Remember, Target made the bathroom announcement in the midst of North Carolina’s HB-2 debate over the very same issue in order to pander to the LGBT left. The American Family Association’s #BoycottTarget petition earned over 1.5 million signatures in response and Target has been reeling financially ever since. Sales last Christmas shopping season, dropped 4.3% and Target’s leadership went so far as to pass the blame for the bathroom policy to communications staff by claiming CEO Brian Cornell had never signed off.
Wednesday’s earnings report forecasted lower profits for the upcoming Christmas shopping season, which is critical to retail’s bottom line, and led to Wednesday morning’s devastating stock collapse.
This Christmas, we’ll continue shopping #AnywhereButTARGET because, despite the hits to the bottom line, Target still stands by the controversial policy that puts its very own customers at risk.
Send Target a message that you’re still shopping #AnywhereButTARGET by joining the movement and sharing with your social media followers by clicking the button below: