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Bloomberg
Target Corp tumbled after posting holiday sales that were below its own expectations and slashing its fourth-quarter sales outlook, delivering a warning sign for the entire retail sector that tougher times lie ahead.
Comparable sales — a key barometre of retail performance — rose 1.4% in the November-December period, far less than last year’s 5.7% growth. Target plans to report full fourth-quarter earnings in early March.
Target couldn’t escape the pressures that also weighed on department stores like JC Penney Co and Kohl’s Corp.
It said the sluggish growth was most pronounced by toys and electronics, which account for a higher portion of the company’s business during the holidays.