MINNEAPOLIS _ Target executives revealed that holiday sales were worse than expected and lowered their outlook for fourth-quarter results.
Comparable sales in November and December dropped 1.3 percent as the retailer continued to get less traffic to its stores, a trend that started last spring. Online sales were strong but could not make up for lost ground in stores.
Target said it now expects comparable sales in the quarter to be down 1 to 1.5 percent. Its previous forecast was for sales in the range of up 1 percent to down 1 percent.
It also expects adjusted earnings per share in the range of $1.45 to $1.55, compared with its previous guidance of $1.55 to $1.75.
CEO Brian Cornell said in a statement hat he was "pleased" with Black Friday sales and that digital sales rose more than 40 percent in December. But that was offset by early softness in the season and a 1.7 percent decline in traffic to stores in those two months.
Sales of electronics and food, which Target blamed for softer sales last year, continued to fall.
Target will report its full quarterly results at its annual investors meeting in New York Feb. 28.
