Target misses sales projections, saying it was hit by the late winter - Bring Me The News

Target misses sales projections, saying it was hit by the late winter

It still enjoyed its best quarter for traffic in 10 years.
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Target was among the retailers impacted by the late winter, that saw heavy snow continue to fall across the northern U.S. into mid-April.

In its 1st quarter results released on Wednesday, the Bullseye says it experienced "delayed sales in temperature-sensitive categories" for the three months ending May 5.

CNBC reports that chains including J.C. Penney and Home Depot have blamed the weather for similarly disappointing results.

The prolonged winter weather led to shoppers delaying popular spring purchases such as gardening equipment, grills and patio furniture.

Nonetheless, Target CEO Brian Cornell says the Minneapolis-based retailer isn't as badly affected because the delayed sales were offset thanks to customers spending more on essentials, grocery and home items.

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The numbers

Target still arguably had a decent quarter – its comparable sales grew 3 percent compared to last year, while its 3.7 percent in traffic was the highest seen in 10 years.

But as ever with the fickle world of investing, its overall earnings at $1.32 per share was below Wall Street expectations of $1.39, while its revenue of $16.56 billion was below the $16.58 billion.

Missing these projections caused Target's share prices to be down 6 percent in premarket trading.

Target will step up its remodeling program in the coming months. In the past three months, it completed 56 store remodels as well as opening seven new stores – six of which were its new small-format stores.

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