Target shares in freefall after disappointing holiday sales
Target announced its fourth-quarter earnings Tuesday, posting a decline in same-store sales compared with the fourth quarter of 2015. Investors are bidding down the retailer's stock in pre-market trading, with shares falling more than 12%. The firm also predicted future revenue and earnings far below what analysts had been expecting.
Why it matters: It'syYet another sign of the retail industry overextended itself in recent years, and the toll that competition from e-commerce has taken on traditional bricks-and-mortar. Long a better performer on Wall Street than its rival Walmart, Target now trades at a relative discount.