By Colin Kellaher
Target Corp. (TGT) shares fell more than 8% in premarket trading Wednesday after the retailer reported disappointing holiday sales.
Target said its comparable sales rose 1.4% for the November and December holiday period, missing its expectations, and warned that comparable sales growth for its full fiscal fourth quarter would miss the 3% to 4% growth it had predicted.
The Minneapolis company said its softer-than-expected holiday results reflect weak sales of toys and electronics.
Despite the sales shortfall, Target said it still expects to meet its earnings guidance for the quarter, thanks to a stronger-than-expected gross margin mix and productivity improvements in its stores and supply chain.
Target shares, which closed Tuesday at $125.26, were recently down 8.1% to $115.18 in premarket trading.
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