[ISN] Target Lowers Forecast on Sales Slump, Canadian Losses

http://www.bloomberg.com/news/2014-08-20/target-lowers-its-forecast-as-sales-slump-canadian-losses-widen.html By Renee Dudley Bloomberg.com Aug 20, 2014 Target Corp. (TGT), still struggling to rebound from last year’s hacker attack, cut its forecast for the year as slumping sales and a money-losing push into Canada take a toll on profit. Target now expects full-year earnings of $3.10 to $3.30 a share, excluding some items, down from a previous forecast of as much as $3.90, according to a statement today. Analysts had predicted $3.44, the average estimate compiled by Bloomberg. The bleaker forecast follows a preliminary earnings report on Aug. 5 that fell short of expectations, signaling that the company’s comeback effort will be slow going. Target has been struggling to boost U.S. traffic, repair its botched Canadian expansion and regain shoppers’ trust after hackers stole millions of customers’ data last year. The retailer hired PepsiCo Inc. (PEP) executive Brian Cornell as its new leader last month, following the ouster of Gregg Steinhafel in May. Target is relying heavily on sales promotions to entice shoppers, but it doesn’t seem to be working, said Brian Yarbrough, an analyst at Edward Jones & Co. in St. Louis. That means Target is squeezing margins without much benefit. […]