Target will announce profits on Wednesday morning as the large-box retailer prepares to enter the holiday season, intends to replace a new CEO, and attempts to break a sales downturn.
The earnings are projected in the fiscal third quarter of the Minneapolis-based retailer by a survey of analysts conducted by LSEG: Earnings per share are $1.72 projected, and Revenue is $25.32 billion.
The sales have remained approximately flat over the past four years as Target has experienced increased competition, and has become less competitive in some of the aspects that made it stand out in the past, such as its eye-catching merchandise, its clean and orderly stores, and its friendly and helpful customer service.
Other customers boycotted the retailer as well, following its reversal of core diversity, equity, and inclusion initiatives, a factor alleged by Target in May to have contributed to its poor sales performance.
However, Target anticipates lowering its sales by a small single-digit percentage again. It indicated that adjusted earnings per share in the year will be between $7 and $9, without allowance for gains made on litigation settlements.
The majority of that would be less than it was last year, when the adjusted earnings per share were $8.86.
Target declared in August that Michael Fiddelke, the chief operating officer and former chief financial officer of the company, would succeed as its next CEO. Therefore, he will be the successor of the longtime Chief Executive Brian Cornell in February.
During an August earnings call on the day Target announced a new CEO, Fiddelke outlined his three highest priorities: regaining the perception of Target as a company that offers fashionable and unique products, offering a more cohesive customer experience, and leveraging technology to its advantage to run an efficient business.
Meanwhile, he indicated that he was not going to wait until he stepped into the role to make changes.
In the previous month, Target declared that it would reduce 1,800 positions in the corporate, which is the biggest layoff in a decade.
It has made attempts to refine its merchandise and recover its sense of fashion, even sending its designers to rodeos and ski resorts to do it. And it has optimized its online fulfillment initiative in stores to attempt to liberate the time of workers to stock shelves and serve customers.
It also implemented a policy adjustment that customers can watch throughout the holiday season, which it called the 10-4 program.
Target is not the only large-box retailer that is receiving a new CEO. Its competitor, Walmart, announced last week that John Furner, the chief executive of its U.S. business, will succeed longtime CEO Doug McMillon.
