Target offers solid outlook despite virus uncertainty

NEW YORK » Target Corp. offered a solid annual profit outlook on Tuesday and said that it hasn’t seen anything related to the spreading new virus so far that would affect its financial targets.

The outlook came as the discounter reported strong fourth-quarter profits, though its sales were weighed down by weak demand for toy and electronics during the crucial holiday shopping season.

Target joins a string of other retailers with disappointing sales during the shortest holiday shopping period since 2013. Walmart had a rare sales shortfall, while Macy’s and J.C. Penney saw sales decline during the fourth quarter. Kohl’s posted disappointing holiday sales but on Tuesday reported that fourthquarter earnings and revenue beat Wall Street expectations. The department store’s CEO Michelle Gass said in a statement that she was encouraged by the “acceleration of traffic and new customer acquisition in our stores and online driven by the unprecedented level of new brands and partnerships.”

Nordstrom is scheduled to report fiscal fourth-quarter results after the markets close Tuesday.

Retailers already dealing with higher costs from an ongoing trade war with China struggled to get potential shoppers through the doors sooner, and the start of 2020 doesn’t appear to be offering much relief. A new virus has spread beyond China after disrupting supply chains there and is now hampering operations in the United States, where there are more than 100 cases in at least 11 states.