A splendid holiday season has given retailers a reason to smile. Certainly, Americans were in the mood to spend, as retail sales during the November/December period increased 5.5% to $691.9 billion, per National Retail Federation. Bullish stock market, improved job prospects, upbeat consumer sentiment and modest inflation were enough to trigger consumer spending.
Our today's article revolves around three discount store retailers — Target (TGT – Free Report) , Costco (COST – Free Report) and PriceSmart (PSMT – Free Report
From the above, it is quite apparent that the near-term outlook for the industry looks favorable. Let's take a closer look at the performances of the three discount retailers.
Target Posts Solid Holiday Comps
Target joined the bandwagon of retailers that have witnessed strong holiday season sales. Comparable sales for this general merchandise retailer rose 3.4% in the combined November/December period buoyed by healthy store comps, robust traffic and sturdy digital sales. The solid holiday numbers allowed management to lift the view.
Target now anticipates digital sales to increase more than 25% for the fourth straight year in fiscal 2017. The company now projects fourth-quarter fiscal 2017 adjusted earnings in the band of $1.30-$1.40 compared with the prior range of $1.05-$1.25. For the fiscal year, management now forecasts adjusted earnings between $4.64 and $4.74 per share, up from the previous guidance of $4.40-$4.60.
