Target stock sees largest one-day drop since 2008

Earnings per share were down 4.6% year-over-year, while revenues decreased 4.3% from the year-ago quarter.

The big box retailer’s net income slumped to $817 million, or $1.45 per share in the fourth quarter ended January 28, from $1.43 billion, or $2.32 per share, a year earlier.

WMT stock’s price is now -4.99% down from its 52-week high and +14.68% up from its 52-week low.

Target also said it plans to launch a dozen new brands in the next two years, which it hopes will drive about $10 billion in sales. The stock has a market cap of $217.40 billion, a PE ratio of 16.19 and a beta of 0.09.

“Some buildings just don’t reflect the brand-we have some old, exhausted stores that haven’t been updated in years”, Cornell told the analysts.

Segment earnings before interest expense and income taxes (EBIT) were $1.34 billion in Q4, down 13.5 percent from $1.55 billion in Q4 2015.

Target’s woes are reflective of the Amazon price wars effecting almost every major retailer. It will also invest more than $7 billion over the next three years on these new initiatives.

“Target’s lost its pizzazz”, Brennan said.

Pricing: Target will invest in lowering its margins to remain price competitive and return to its roots as an Every Day Low Price retailer. Executives said they’ll be trying to move away from promotions, particularly on basics such as food and personal care items, and trying to get back to a model focused on everyday low prices. That might look like Target is stealing a page from Wal-Mart’s playbook.

Twin Capital Management Inc. lowered its position in Wal-Mart Stores Inc (NYSE:WMT) by 2.0% during the fourth quarter, according to its most recent Form 13F filing with the SEC. Sales also are moving online, and even when customers pick Target over an online competitor like Amazon, they shop differently. Over 130 small format Targets will be open by 2019. The prior-year quarter’s results include a gain on the sale of the pharmacy and clinic businesses.

Wells Fargo & Company reiterated their hold rating on shares of Wal-Mart Stores, Inc. The 52-week high of Wal-Mart Stores, Inc. In order to determine directional movement, the 50-day and 200-day moving averages for Wal-Mart Stores, Inc.

So much so that the Minneapolis-based retailer revised its growth plans and lowered its forecast downward for comparable store sales this year. Meanwhile, they’ll need to increase the speed with which they sell products to help make up for the differential. Wal-Mart Stores’s payout ratio is 43.48%. These stores, Mulligan noted, have double the sales productivity of its larger, suburban stores.

Grocery accounts for roughly one-fifth of Target’s annual revenue. Cornell told investors that the company will focus on updating locations that haven’t been in years.

The company forecasts earnings per share of 90 cents to $1 for the first quarter and $4.20 to $4.40 for the year. Analysts’ consensus revenue estimate was $20.70 billion.

One bright spot in Target’s results was a 34 percent increase in digital sales.

There is a reason why I have chosen to avoid investing in nearly all of the retail sector – the rapidly-changing consumer landscape is just too hard to get in front of. J.C. Penney swung to a profit for the fourth quarter, but total sales fell slightly. It now has about 1,800 stores, many of which were opened decades ago.

The company’s stock fell 12.6% in pre-market trading to $58.50.