Some conservatives have been engaged in a quiet boycott of Target over the store’s politically correct transgender bathroom policies. It may be affecting Target’s bottom line.
The FOX Business Network reports:
Target Forecasts Drop in Same-Store Sales, Shares Sink
Target forecast a surprise drop in full-year sales at established stores on Tuesday and reported a steeper-than-expected fall in holiday-quarter sales due to “unexpected softness” at its stores.
The retailer’s shares tumbled nearly 12 percent in premarket trading.
Target’s net sales have now declined for six quarters in a row as shoppers increasingly gravitate to online retailers such as Amazon.com Inc and spend more on big-ticket purchases such as cars and home renovations rather than on electronics, food and apparel.
The Minneapolis-based retailer said it expects sales at stores open for at least a year to decline in the low-single digit percentage range in fiscal 2017, after reporting a fall of 0.5 percent in 2016.
Analysts on average were expecting the company’s same-store sales to increase 0.4 percent in 2017, according to analysts polled by research firm Consensus Metrix.
Target also forecast full-year earnings from continuing operations of $3.80-$4.20 per share, while analysts’ on average were expecting its profit to top $5.00, according to Thomson Reuters I/B/E/S.
This could be a classic case of people voting with their wallets.
Target could have avoided it if they resisted the urge to get political.