Investing.com - U.S. retail giant Target (N:TGT) reported weaker than expected fourth quarter earnings and revenue figures early on Wednesday, sending its shares lower in pre-market trade.
Target said adjusted earnings per share came in at $1.52, missing expectations for adjusted earnings of $1.54 per share but up 2.1% from adjusted earnings of $1.49 in the same period a year earlier.
Revenue totaled $21.6 billion in the fourth quarter, just below forecasts for sales of $21.68 billion.
Fourth quarter comparable sales increased 1.9%, driven by traffic growth of 1.3%. Digital channel sales increased 34%, contributing 1.3% to comparable sales growth.
"With traffic growing for five consecutive quarters and our signature categories of Style, Baby, Kids, and Wellness leading our growth, Targets results demonstrate that we are focused on the right strategic priorities,” said Brian Cornell, chairman and CEO of Target.
In first quarter 2016, Target expects both GAAP earnings per share from continuing operations and adjusted earnings per share of $1.15 to $1.25, compared with first quarter 2015 GAAP EPS from continuing operations of $1.01 and adjusted EPS of $1.10.
Following the release of the report, Target shares lost 77 cents, or 1.04%, in pre-market trade to $73.20 from a closing price of $73.97 on Tuesday.
Meanwhile, U.S. stock futures pointed to a sharply lower open. The Dow futures tumbled 152 points, or 0.93%, the S&P 500 futures fell 17 points, or 0.89%, while the Nasdaq 100 futures dropped 53 points, or 1.27%.