Retailer Target pins missed financial goals on lackluster Apple device sales
Target's executives revealed in an earnings conference call that Apple sales at their stores dropped 20 percent, calling it one of the major reasons for missing earnings guidance, and forcing a revision for the next quarter as well.
Target CEO Brian Cornell told analysts on a conference call about the significant drop in Apple sales by volume. The lack of Apple sales was blamed for a double-digit sales decline in the company's overall electronics business.
Cornell also stated that Target was working with Apple to improve performance in the stores, but no specifics as to what the future plans are were given.
Target Corporation reported a second quarter sales decrease of 1.1 percent and earnings per share from continuing operations of $1.07, a decrease of 11.6 percent from the year-ago quarter. Other factors attributed to the Target losses were the same challenging retail market that Apple notes in its own earnings reports, a drop in grocery sales, and poor consumer response to the Target Pharmacy migration to CVS ownership.
Expecting a continued slide in both the third and fourth quarters of 2016, Target now expects comparable sales to fall in a range of no growth or a decrease of two percent.
Target started carrying the Apple iPod, iPad, and iPhone since retail sales programs began for the respective products. The retailer picked up sales for the Apple Watch in October 2015, following an April 2015 initial release date.
Target CEO Brian Cornell told analysts on a conference call about the significant drop in Apple sales by volume. The lack of Apple sales was blamed for a double-digit sales decline in the company's overall electronics business.
Cornell also stated that Target was working with Apple to improve performance in the stores, but no specifics as to what the future plans are were given.
Target Corporation reported a second quarter sales decrease of 1.1 percent and earnings per share from continuing operations of $1.07, a decrease of 11.6 percent from the year-ago quarter. Other factors attributed to the Target losses were the same challenging retail market that Apple notes in its own earnings reports, a drop in grocery sales, and poor consumer response to the Target Pharmacy migration to CVS ownership.
Expecting a continued slide in both the third and fourth quarters of 2016, Target now expects comparable sales to fall in a range of no growth or a decrease of two percent.
Target started carrying the Apple iPod, iPad, and iPhone since retail sales programs began for the respective products. The retailer picked up sales for the Apple Watch in October 2015, following an April 2015 initial release date.
Comments
now take NFC payments like Apple Pay already.
Give me a break.
Imagine if Apple went out of business?
Maybe accept ApplePay?
In-store retail for electronics is even more ripe for this. Come to a nearby retail store to essentially try things out, then go buy it at a significant discount online. Free ship.
The urban legend is likely true: shopped goes to best buy to buy an HDTV. Picks out the one he likes, hit his favorite app to check prices. Oddly enough, the cheapest one was Best Buy, $100 less than the price on the shelf he was standing front of. Click here to purchase, deliver to the store, in stock, on loading dock in 10 minutes.
For one thing, they keep dropping SKUs. At least once or twice a month I find that they've stopped carrying an item or brand I used to buy there, and it's getting to the point that their selection sucks. In fact, in many areas of the store they've even started spacing items further apart in order to hide the fact that they're carrying less. Are they foolish enough to think their customers don't notice these things?
Also, I'm pretty damn tired of the way they're continually moving items and even entire sections around in order to make their customers go searching elsewhere for them. Bringing CVS into their stores sucks too.
And speaking of Apple products, I tried doing an iPhone pre-order there once.... only to get a call the following FEBRUARY that the device had finally arrived and did I still want it?
Hy-Vee may cost just a bit more, but they don't mess with me the way Target does, and as such Hy-Vee and Costco are getting more and more of my dollars, and all despite the fact I lack practically five houses away from a SuperTarget.