Investors punished Walmart by selling off shares, but the reaction Tuesday to Target was more subdued, suggesting that the traditionally irascible Wall Street may be giving the retailer what it needs most: more time to win over customers.
The alternative, which is to restrict or throttle investment, may deliver more profit in the short term, but it will be to the detriment of long-term performance." Amazon has created fierce loyalty among shoppers who spend $99 for a membership that comes with free shipping, as well as streaming movies and music.
Target earned $1.1 billion, or $2.02 a share, in the fourth quarter, compared with $817 million, or $1.45, a year earlier.
Target expects its per-share earnings this quarter to range from $1.25 to $1.45.
Full-year earnings are projected in the range of $5.15 to $5.45 a share, versus Wall Street expectations for $5.21.