Disappointing results came from Target on Wednesday. After that report the shares of big-box retailers decreased by 7%.
During November and December, based on the information same-store sales added 4%. For example, during the same period of 2018 same-store sales rose 5.7%.
Nevertheless, the company did not change the prior outlook for earnings of the fourth quarter. Moreover, same-store sales rose for the last 11 months, despite all of the problems.
The company had a massive plan regarding the toys. To open mini Disney shops within individual Target shops, it partnered with Disney. Moreover, the company devoted more space to toys. Nevertheless, when compared with the result from last year, toy sales remained at the same level.
Furthermore, in November and December, electronics sales declined by more than 6%. Another problem is that home items’ sales declined by about 1%.
Hopefully, beauty sales added about 7%, and apparel sales increased by 5%. Also, beverage and food sales raised nearly 3% during the holiday season.
All in all, from November 1 through December 24, sales of electronics and appliances rose 4.6%. Meanwhile, based on the data from the Mastercard Spending Pulse, the home furniture and furnishing category climbed 1.3%.
As the number of people is using same-day options as a curbside pickup when they buy online, sales increased by 19%.
One of the primary reasons why the target reported disappointing might be connected with the number of days. For example, last year’s holiday season had six fewer days from Thanksgiving to Christmas, in comparison with 2018. It was the shortest possible calendar.
As the retailer expected a strong holiday season, some people did not expect this information. It is not surprising that the share of big-box retailers declined after reporting the results in this situation. It is the situation of the target stocks.