During its earnings called today, Target said that sales of Apple products were down 20% last quarter, reports Reuters. The company lowered its fiscal year profit guidance on Wednesday due to lower demand for electronics and a weak start to its revamped grocery business.
Chief Executive Brian Cornell said customer visits declined across product categories during the quarter but electronics sales fell by a double-digit percentage rate and accounted for about two-thirds of the overall decline in sales at stores open at least a year. About a third of the decrease in electronics sales stemmed from reduced demand for Apple products, which were down more than 20 percent.
Despite the drop in sales, the retailer says it's working with Apple to capitalize on new product launches during the second half of the year.
Newly appointed Chief Merchandising Officer Mark Tritton will spend time with Apple to make sure "we're putting the right plans together for the back half of the year, that we're ready to capitalize on their new innovation that they will be bringing to the market."
Target's shares closed down 6.4% at $70.63.
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Chief Executive Brian Cornell said customer visits declined across product categories during the quarter but electronics sales fell by a double-digit percentage rate and accounted for about two-thirds of the overall decline in sales at stores open at least a year. About a third of the decrease in electronics sales stemmed from reduced demand for Apple products, which were down more than 20 percent.
Despite the drop in sales, the retailer says it's working with Apple to capitalize on new product launches during the second half of the year.
Newly appointed Chief Merchandising Officer Mark Tritton will spend time with Apple to make sure "we're putting the right plans together for the back half of the year, that we're ready to capitalize on their new innovation that they will be bringing to the market."
Target's shares closed down 6.4% at $70.63.
Read More