"Target is betting a billion-dollar facelift will improve its fortunes after a rough couple of years. The Minneapolis-based retailer posted its earnings on Wednesday, its 10th quarter in the past 12 with negative or flat comparable sales, and cautioned that the critical fourth quarter will likely be down as well. "We're far from satisfied with our current results, and we won't be satisfied until we're operating at our full potential," incoming CEO Michael Fiddelke said in a call with reporters."
"Target will increase its annual capital expenditures from $4 billion to $5 billion to invest in remodeling and refreshing its store fleet, Fiddelke said, including the biggest changes to its merchandise assortment and floor plans that the company has seen in years. Heading into the holidays, Fiddelke and Chief Commercial Officer Rick Gomez said shoppers continue to be stretched thin and making trade-offs wherever they can - a theme that has persisted in recent years across many retailers."
Target posted results marking its 10th quarter in the past 12 with negative or flat comparable sales. Third-quarter comparable sales declined 2.7% while adjusted EPS was $1.78, slightly above expectations. Management attributed much of the shortfall to a sharp drop-off in September with August and October relatively flat. The company will raise annual capital expenditures from $4 billion to $5 billion to remodel and refresh its store fleet, including major assortment and floor-plan changes. Shoppers entering the holidays remain stretched and are prioritizing core holiday items. Target is also launching a ChatGPT integration as leadership focuses on returning to growth quickly.
Read at Business Insider
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