Target Corp. (Minneapolis) and Lowe’s Cos. Inc. (Mooresville, N.C.), two of the decade’s more reliably successful retailers, tempered their sales forecasts this week.
Target said it forecast a same-store sales gain of 1.5 – 2.5 percent for September, lower than its previous forecast of 4 – 6 percent. The mass merchant discounter cited weaker store traffic, particularly in Florida and the Northeast.
Lowe's said it now projects fiscal-year earnings at the low end or slightly below its prior forecast, citing lower-than-expected sales trends. The home-improvement retailer said drought conditions in the mid-Atlantic, Southeastern and Western regions of the country have hurt performance in its outdoor segment.
Lowe’s has already announced plans to expand into big cities like New York and is set to open its first stores in Canada later this year. Lower home sales and less construction have hurt results at Lowe’s and its rival, The Home Depot Inc. (Atlanta), over the last year.
“[M]any uncertainties remain and it seems prudent to further temper our sales and earnings outlook,” said chairman and ceo Robert Niblock.
The forecasts created more uncertainty about the upcoming holiday shopping season.