Wesfarmers flags 'disappointing' Target earnings

By a staff reporter

Wesfarmers chief executive Richard Goyder expects Target's full-year earnings to be "disappointing" on a weak second-half sales performance.

In a statement to the Australian Securities Exchange, Mr Goyder said while the earnings will come in lower than expected, appropriate action has been taken to improve its future earnings and competitive position and maintain its strong brand in the Australian market.

The group said a number of factors had precipitated Target's weaker second-half performance, including a late start to the winter season impacting both sales and margin; higher levels of clearance activity resulting from excess inventory;  higher than anticipated shrinkage rates; and increased costs mainly associated with restructuring activities.