Just days after the U.S. government told us retail sales had jumped the most in years, Target just missed top-line numbers and axed Q2 guidance. The company may have posted adjusted Q1 EPS of $1.29, which beat $1.19 estimates, but it missed on Q1 revenue and sees Q2 EPS of $1 to $1.20 – far worse that estimates of $1.36. As a result, shares of Target fell more than $6 a share yesterday.
While retail sales reportedly surged 1.3% last month after falling 0.3% in March, gains were not felt by major companies, like Target, Macy’s and Nordstrom, each of which cut their forecasts for the remainder of 2016. Macy’s same-store sales fell 5.6% in Q1 2016. It expects full-year sales to fall 3% to 4%. Nordstrom same-store sales were don 1.7% in Q1, as well.