Target will report earnings before the bell. Here's what Wall Street expects

Core Viewpoint - Target is expected to report a decline in earnings for the fiscal fourth quarter, despite raising its sales forecast, indicating reliance on discounts which may pressure margins [1][2][4] Sales Performance - Target raised its comparable sales guidance in January due to steady traffic during the holiday shopping season, but maintained its profit guidance, suggesting reliance on deals and discounts [2][4] - The retailer has struggled with discretionary merchandise sales amid inflation and competition, while Walmart has seen strength in this category [3][4] Financial Outlook - Target's earnings per share are projected at $2.26, with revenue expected to be$30.8 billion [9] - The company cut its profit guidance in November after a significant earnings miss, attributing some issues to costs related to a port strike, but primarily due to weaker discretionary sales [4] Product Strategy - Target has found success with new, trendy merchandise, such as workout gear and seasonal food items, which has driven customer spending [5][6] - The company is pursuing new partnerships with brands like Champion and Warby Parker to attract customers and enhance its product offerings [6][7] Future Initiatives - The partnership with Champion will introduce an exclusive line of sportswear, while Warby Parker will have shop-in-shops and online offerings, with a broader rollout planned for 2025 [7][8] - These initiatives aim to entice shoppers with fresh merchandise and compete more effectively against rivals, although the impact may take time to materialize [8]