LONDON (ShareCast) - (Sharecast News) - US retail giant Target posted quarterly earnings that fell well and truly short of analysts' expectations on Wednesday as the firm suffered heightened freight costs, bigger markdowns, and lower-than-expected sales of discretionary items.
Target reported earnings per share of $2.19 each, shy of the $3.07 per share expected on the Street despite quarterly revenues beating the prior year's print of $24.20bn, and expectations of $24.49bn, at $25.17bn.

Net income fell to $1.01bn, or $2.16 per share, down from $2.1bn, or $4.17 per share, a year earlier.

Comparable sales grew 3.3% in the first quarter, ahead of projections for 0.8% growth, while traffic at Target's stores and its website rose 3.9% year-on-year.

Chief executive Brian Cornell cited "unusually high costs" as the cause of its earnings miss.

As of 1340 BST, Target shares were down 22.18% in pre-market trading at $167.54 each.



Reporting by Iain Gilbert at Sharecast.com

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