The News

The News

Wednesday, November 20, 2024

Target sounds the alarm bell on holiday shopping

November 20, 2024 0

Target on Wednesday missed Wall Street's quarterly earnings and revenue expectations and posted only a slight uptick in customer traffic, despite the discounter's price cuts on thousands of items and its early holiday sale. 


The big-box retailer reversed course and cut its full-year profit guidance, just three months after hiking that forecast. It said it expects full-year adjusted earnings per share to range from $8.30 to $8.90. That's lower than the $9 to $9.70 per share range that it shared in August and below the $9.55 a share expected by analysts, according to StreetAccount.

Target now expects fourth-quarter comparable sales to be approximately flat. That metric, which is also known as same-store sales, includes sales on its website and stores open at least 13 months. 

Target fell short of Wall Street's earnings per share estimate by 20%, its biggest miss in two years. It also marked its first revenue miss since August 2023. 

The company's shares plunged more than 20% in morning trading, hitting a 52-week low.

On a call with reporters, CEO Brian Cornell said "lingering softness in discretionary categories" and costs associated with rushing shipments and preparing for the short-lived port strike in October hurt the company's quarterly performance. 

Chief Operating Officer Michael Fiddelke said, "it's disappointing that a deceleration in discretionary demand combined with some cost pressures have caused us to take our guidance back down after raising it last quarter." But he added that Target feels confident in its long-term outlook. 

Here's what Target reported for the three-month period that ended Nov. 2 compared with what Wall Street expected, based on a survey of analysts by LSEG:

  • Earnings per share: $1.85 vs. $2.30 expected
  • Revenue: $25.67 vs. $25.90 billion expected

Target, which is known for its cheap chic spin on clothing, home goods and other discretionary merchandise, has struggled to attract steady foot traffic and higher sales. Shoppers have been selective about spending after cumulative years of pricier food, housing and more. 

To woo price-sensitive consumers, Target announced in May that it would cut prices on about 5,000 frequently purchased items, including diapers, bread and milk. It announced another wave of price reductions in October on more than 2,000 items during the holiday season, including cold medicine, toys and ice cream.

Target said it will have lowered prices on more than 10,000 items this year by the end of the holiday season.

Target offered those discounts after hearing from shoppers about "the importance of value and affordability," Chief Commercial Officer Rick Gomez said. He added the price cuts on frequency items leaves more room in customers' budgets to splurge on products that they want, whether it's a new outfit or beauty item.

Yet those price reductions weren't enough to lift Target's performance in the fiscal third quarter. 

Target eked out a comparable sales gain of 0.3%, as shoppers spent more on its website but less at its stores. That fell short of the 1.5% increase that analysts expected, according to StreetAccount. 

Target's fiscal third-quarter net income tumbled about 12% to $854 million, or $1.85 per share, from $971 million, or $2.10 per share, in the year-ago quarter. Revenue rose from $25.40 billion in the year-ago period.

Customer traffic across Target's stores and website increased 2.4% year over year. Digital sales were a bright spot, growing 10.8% year over year because of double-digit gains with curbside pickup and almost 20% increases with same-day home deliveries. Comparable store sales, however, declined 1.9% year over year. 

Customers gravitated toward food and everyday essentials during the quarter, along with beauty items. Comparable sales in that category, which includes sales at Ulta Beauty shops inside of Target, grew more than 6%. Two other categories, food & beverage and essentials, posted low single-digit gains compared with the year-ago period.

The Minneapolis-based retailer's results clash with trends at Walmart, which on Tuesday reported improving sales in discretionary merchandise for the second quarter in a row. Walmart also said it's gaining market share among upper-income households. 

The two big-box retailers, however, have a different sales mix, as groceries account for about 60% of Walmart's U.S. business but only about 23% of Target's in the most recent fiscal year, according to the companies' financial filings.

Gomez said the retailer is contending with savvy and selective shoppers who aren't willing to buy until the price is right. 

"Consumers have become increasingly resourceful and strategic on how they shop," he said. "They know deals are out there. They're willing to search for them, and they'll wait for the exact right moment to head into our stores or log on to our app."

For example, Gomez said the week ahead of Target's Circle Week, a promotional event in October, was quieter. But it was the biggest Circle Week to date in terms of sales, and 3 million new members signed up for Target's loyalty program, he added.

Gomez said Target is seeing momentum when it offers eye-catching merchandise, such as debuting new workout gear, pet accessories, seasonal flavors of food or a fresh hair care line.

Higher supply chain costs posed another challenge in the quarter, Fiddelke said. As the company geared up for the port strike, which wound up lasting only a few days, Target rerouted and rushed shipments and loaded up on inventory to make sure it had the merchandise that it needed for the holiday season. 

"That came at a cost," he said. "It meant we were fuller a little bit earlier in the quarter than we would like to be, and we're never quite as efficient when our buildings are full, but we felt like that was the right decision to really protect the guest experience."

Shares of Target have lagged behind the S&P 500. As of Tuesday's close, Target's stock is up about 9.5% this year, compared with the S&P 500's approximately 24% gains during the same time period. The company's share price of around $155 is also well off the pandemic highs, when its stock rose to nearly $270.

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Magnetic North Pole moving in way never seen before by scientists

November 20, 2024 0

 The Earth's magnetic North Pole is currently moving toward Russia in a way that British scientists have not seen before.



Scientists have been tracking the magnetic North Pole for centuries, telling the British newspaper The Times that it had moved closer to the northern coast of Canada. In the 1990s, it drifted into the Atlantic before moving in a faster manner toward Siberia in Russia.

Compass needles in the Northern Hemisphere point toward the magnetic North Pole, although the exact location of it changes from time to time as the contours of Earth’s magnetic field also change. The magnetic North Pole is sometimes confused with the geographic North Pole, but this spot stays at the same place as it is where all lines of longitude converge.

In the 300 years between 1600 and 1900, scientists estimate that the magnetic North Pole moved about six miles per year. At the beginning of this century, it picked up to about 34 miles per year, before slowing in the last five years to about 22 miles per year.

Why does the North Pole's movement matter?

The moves are tracked as the data allows the compasses in our smartphones and other navigation devices to navigate.

Scientists told The Times these movements are tracked by the British Geological Survey and the U.S. National Oceanic and Atmospheric Administration. In conjunction, they make the World Magnetic Model, that predicts where the pole should be at any time.

The model plays a role in the GPS systems we use on a day-to-day basis.

“Planes, boats, submarines, you name it, it’s in there,” William Brown, the global geomagnetic field modeler at the British Geological Survey, said in an interview with The Times.

What causes the movements?

Earth’s outer core is made up of mostly molten iron, a liquid metal. Unpredictable changes in the way it flows cause the magnetic field around the Earth to shift, which then causes the magnetic core to also move.

“It’s like a giant cup of tea,” Brown said to The Times. “It’s a hot liquid with the viscosity of water.”

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Tuesday, November 19, 2024

$1200 Federal Checks Direct Deposit Coming: Who will get this? Check Eligibility & Payment Date

November 19, 2024 0

 Federal relief payments of $1200 can offer a financial boost to eligible individuals and families. This article provides a complete guide on eligibility criteria, payment timelines, and essential steps to confirm if you qualify.



$1200 Federal  Checks Direct Deposit Coming: The prospect of $1200 federal  checks has created curiosity and excitement among millions of Americans, especially as the economic recovery continues. If new federal stimulus checks are announced, they could follow similar eligibility criteria and distribution methods as previous rounds of Economic Impact Payments (EIPs). In this guide, we’ll walk you through eligibility requirements, payment schedules, direct deposit setup, and practical tips for securing your payment without hassle.

$1200 Federal Checks Direct Deposit Coming

Federal relief payments, including the $1200 Economic Impact Payments, have served as essential support for many Americans. Understanding eligibility, setting up direct deposits, and using reliable IRS tools are key steps to ensure the timely receipt of any future payments. While no new payments are confirmed, knowing the process will help you stay prepared and make the most of any available assistance.

A Brief History of Economic Impact Payments

The concept of federal relief payments took shape during the COVID-19 pandemic to ease financial strains on households. Three rounds of Economic Impact Payments were approved:

  1. First Round (CARES Act, March 2020): Eligible individuals received up to $1,200, with $500 for each qualifying dependent.
  2. Second Round (December 2020): Payments of up to $600 per person.
  3. Third Round (American Rescue Plan, March 2021): Payments of up to $1,400 per eligible individual, including dependents.

These payments reached millions of Americans, helping them with essentials like rent, utilities, and groceries during uncertain times. The IRS used tax returns to determine eligibility, and payments were issued as direct deposits, checks, or debit cards.

Eligibility Requirements for a $1200 Federal Relief Check

If additional federal payments are approved, these general eligibility guidelines may apply:

  1. Income Levels
    Income thresholds determine eligibility, and previous payments followed these guidelines:
    • Individuals: Full payment if AGI is $75,000 or less, reduced payments up to $99,000.
    • Married Couples: Combined AGI up to $150,000 for full payment, phasing out at $198,000.
    • Head of Household: Full payment for AGI up to $112,500, phasing out at $136,500.
  2. Tax Filing Status
    Individual, joint, or head of household status affects eligibility and payment amounts, making tax filing essential for verification.
  3. Dependents
    Qualifying dependents under 17 add extra funds to the payment amount. Past rounds offered $500 to $1,400 per dependent.
  4. Social Security, SSI, and Disability Benefits
    Beneficiaries of Social Security, SSI, and disability benefits automatically qualified without additional steps.
  5. Non-Filers
    Low-income individuals who didn’t need to file taxes could use a special non-filer tool provided by the IRS to qualify.

Setting Up Direct Deposit with the IRS

To speed up payment delivery, setting up direct deposit is highly recommended:

  1. Log into Your IRS Account: Visit IRS.gov and create an account if you don’t have one.
  2. Update Banking Information: Enter or confirm your bank account information under “direct deposit” to ensure funds reach you quickly.
  3. Check the “Get My Payment” Tool: This IRS tool provides real-time updates on payment status. Using direct deposit ensures the fastest possible distribution method, as paper checks and debit cards may experience delays.

Tips to Avoid Scams

With each payment round, there has been an increase in scams targeting eligible individuals. Here are some ways to avoid fraud:

  1. Verify Sources: Only use official websites such as IRS.gov. Never respond to emails, texts, or calls asking for personal information or payment details.
  2. Beware of “Fees”: The IRS does not charge fees for stimulus payments.
  3. Double-Check Suspicious Communications: Scammers may impersonate the IRS or other government agencies. When in doubt, contact the IRS directly.

Practical Tips: Track Your Payment Status

If eligible for a payment, the IRS’s Get My Payment tool is essential. Here’s how to use it:

  1. Visit the IRS Website: Go to the Get My Payment page on IRS.gov.
  2. Enter Required Information: You’ll need your Social Security number, date of birth, and mailing address to access your status.
  3.  Check Payment Status and Method: This tool shows whether your payment is scheduled and the method—direct deposit,  check, or debit card.
  4. A) in Canada: How to Boost Your Savings and Buy Your Dream Home

Impact of Economic Impact Payments on Americans

The stimulus checks proved to be more than just relief—they also provided a safety net for many families and individuals. A 2021 study by the U.S. Census Bureau found that over 65% of recipients used their stimulus payments on essential expenses like groceries, utilities, and rent. For others, it allowed them to catch up on bills, repay debts, or save for future emergencies.

By understanding these impacts, the value of such relief programs becomes clearer. They play a key role in stabilizing household finances, particularly during challenging times.

FAQs On $1200 Federal Checks Direct Deposit Coming

1. What if I didn’t receive my $1200 payment?
If you believe you were eligible but didn’t receive a payment, you can claim it as a Recovery Rebate Credit on your tax return. This option allows you to report any missing payments and receive a refund.

2. Can non-tax filers still receive payments?
Yes, non-tax filers previously qualified by using the IRS non-filer tool to register for stimulus payments.

3. How do Social Security beneficiaries receive their payments?
For previous rounds, Social Security beneficiaries automatically received payments without extra action. Payments were issued via the same method as their Social Security benefits.

4. Are direct deposits secure?
Direct deposit is considered secure, with the IRS using encryption to protect information. It is also the fastest way to receive funds.

5. How can I verify a payment update?
Visit the official IRS site and use the “Get My Payment” tool. Avoid unofficial sources to prevent scams.

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