Part 5/9:

Traffic numbers also indicated minimal growth, creating uncertainty for stakeholders. Although the company emphasized strong digital sales performance, this was somewhat overshadowed by five consecutive quarters of negative growth prior. Thus, while double-digit growth in digital sales is noteworthy, it appears to be more of a recovery than an outright expansion.

Future Guidance: A Dramatic Shift

Target’s guidance for future earnings has also been a cause for concern. In a prior quarter, the company projected a Gap EPS range of $8.60 to $9.60; however, the updated ranges fell sharply to just $8.30 to $8.90. Such an abrupt downward revision naturally fueled the stock's decline.