Target Corp. (TGT), the second-largest U.S. discount retailer, said first-quarter profit will be less than it previously expected as cold weather hampered sales of spring merchandise.
Adjusted profit in the current quarter will be less than the low end of its forecast range of $1.10 to $1.20 a share, the Minneapolis-based company said today in a statement. The average of 10 analysts’ estimates compiled by Bloomberg was $1.11 a share.
Target Chief Executive Officer Gregg Steinhafel has been trying to boost sales by adding fresh food to stores and enticing shoppers to buy more with a discount card. The company said today that colder-than-usual spring temperatures are hurting sales in weather-sensitive categories throughout its stores.
The shares fell 1.3 percent to $67.60 at 8:08 a.m. in New York. Target had gained 16 percent this year through yesterday, compared with an 8.8 percent increase for the Standard & Poor’s 500 Index.
The company maintained its forecast for full-year profit of $4.85 to $5.05 a share.
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