Retail group Target cut its profit outlook yesterday after its quarterly sales fell by more than expected.
The sales drop was due to a weakened demand for electronics and a disappointing performance for its grocery business.
The company said like-for-like sales in the second half of the year would be between flat and minus two per cent.
It revised its profit forecast for the year to between $4.80 and $5.20 per share (369p - 400p) - down from a forecast of $5.20 - $5.40 (400p - 415p).
Target’s chief executive Brian Cornell said customer visits had declined; the sales drop in electronic goods was in double digits.
Electronics accounted for around two-thirds of the company’s fall in like-for-like sales. Apple products performed particularly badly, with sales down by over 20 per cent.
Cornell said the company’s market share in clothing and home improvement had increased.