Target $TGT (+0,33%) recently released its quarterly results, which fell short of Wall Street expectations. The retailer reported sales of $25.67 billion, while analysts had expected USD 25.87 billion. Earnings per share (EPS) were 1,85 USD, significantly below the consensus estimate of 2,30 USD.

CEO Brian Cornell commented on the results: "We saw some strengths in the business, including a 2.4% increase in the number of customers, nearly 11% growth in the digital channel and further growth in the beauty and frequency categories. At the same time, we encountered unique challenges and cost pressures that impacted our results."

For the full year, Target lowered its EPS guidance to $8.30 to $8.90, significantly below the prior consensus of $9.52, or 7 to 13% less. The 4.9% year-over-year decline in sales is due to weaker demand in categories such as housewares and apparel.

Another factor influencing the results was the increase in operating costs, particularly in logistics and personnel. In contrast, Walmart was able to exceed its sales expectations.

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