Target Another Retail Victim This Holiday Season

Shares of Target Corporation TGT fell more than 4 percent Wednesday after the department store's November and December sales guidance disappointed the Street.

Target said its comparable sales during the Holiday season fell 1.3 percent and total sales fell 4.9 percent, although this figure reflects the impact of the sale of its pharmacy and clinic businesses in December 2015.

Target acknowledged its November and December sales performance was softer-than-expected, which prompted management to revise its fourth quarter and full-year 2016 guidance lower.

Guidance

Target now expects fourth quarter comparable sales to be in the range of negative 1.5 percent to negative 1.0 percent compared to a prior guidance range of negative 1.0 percent to positive 1.0 percent.

The company also expects its earnings per share to now fall in a range of $1.45 to $1.55, down from a prior guidance of $1.55 to $1.75 per share.

Target expects its full year earnings per share to be in a range of $4.57 to $4.67, down from a prior guidance of $4.67 to $4.87 per share.

Case Of Deja Vu

Target's woes are far from unique in the department and retail sector.

Shares of Macy's Inc M hit a 52-week low of $29.70 earlier this month and are now lower by more than 15 percent since January 1. Similarly, shares of rival department store Kohl's Corporation KSS has lost more than 15 percent since the start of the year.

Macy's and Kohl's disappointed the Street when both companies reported a same-store sales decline of 2.1 percent.

No doubt 2017 is proving to be a rough start for the department and retail sector. The question remains is now a good time for contrarian investors to buy shares of some of these poor performing stocks?