Target Cuts Guidance After 3Q Sales, Earnings Miss

By Colin Kellaher

Target posted fiscal third-quarter sales and profit that missed Wall Street's expectations and cut its full-year earnings guidance.

The Minneapolis retailer on Wednesday reported earnings of $854 million, or $1.85 a share, for the quarter ended Nov. 2, down from $971 million, or $2.10 a share, a year earlier, and below the $2.30 a share that analysts polled by FactSet, on average, were expecting.

Revenue rose 1.1% to $25.67 billion, shy of the $25.87 billion Wall Street was looking for, while comparable sales edged up 0.3%, missing the 1.5% rise analysts had penciled in.

Ahead of crucial holiday selling season, Target forecast fourth-quarter earnings of $1.85 to $2.45 a share amid roughly flat comparable sales and cut its full year profit guidance to $8.30 to $8.90 a share from a prior forecast of $9.00 to $9.70 a share.

Analysts are expecting a fourth-quarter profit of $2.65 a share and a 1.3% rise in comparable sales, according to FactSet.

Write to Colin Kellaher at colin.kellaher@wsj.com