NEW YORK, NY / ACCESSWIRE / January 19, 2017 / Retail stocks fell sharply Wednesday as traffic and sales numbers have continued to trend downwards for large retailers. On Wednesday, Target was the latest retailer to report disappointing holiday sales and as a result slashed guidance for the fourth quarter. Kohl's and Macy's both fell sharply after reporting a decline in holiday sales earlier this month.

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"Weak holiday sales results for Macy's and Kohl's reflect the continued secular challenges that plague the department store industry," said Christina Boni, a Moody's vice president and senior analyst, in a research note on January 5th. "We expect the shift of purchases to alternative channels such as online and the off-price channel to continue in 2017. Lean inventories entering fourth quarter were not enough to support profitability targets at either Macy's or Kohl's given the disappointing sales performance."

Target Corporation (NYSE: TGT)

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Target's shares declined 5.77 percent to close at $66.85 a share Wednesday. The stock traded between $66.35 and $68.00 on volume of 19.06 million shares traded. The company reported comparable sales during the combined November/December months declined 1.3 percent year-over-year. Total sales for the period declined 4.9 percent year-over-year, reflecting the impact of the sale Target's pharmacy and clinic businesses in December 2015. Target now expects comparable sales to decline between 1 percent and 1.5 percent in the fourth quarter of 2016, down from its previous guidance range of a decline of 1 percent and a gain of 1 percent. Adjusted EPS is now expected to be between $1.45 and $1.55 a share, down from previous guidance of $1.55 and $1.75. The Company is scheduled to release results for the fourth quarter 2016 on Feb. 28th, 2017.

"While we were pleased with Black Friday sales, December digital sales growth of more than 40% and continued strength in our signature categories, these results were offset by early season sales softness and disappointing traffic and sales trends in our stores," said Chief Executive Brian Cornell.

Wal-Mart Stores Inc. (NYSE: WMT)

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Wal-Mart's shares declined 0.45 percent to close at $68.11 a share Wednesday. The stock traded between $67.54 and $68.11 on volume of 7.32 million shares traded. The company plans to spend $6.8 billion of capital investments in the U.S. in fiscal 2017. Wal-Mart expects to create 10,000 new jobs thorough the opening, expanding and relocating of 59 Walmart and Sam's Club facilities as well as e-commerce services.

"Walmart is investing to better serve customers," said Dan Bartlett, Walmart executive vice president for corporate affairs. "With a presence in thousands of communities and a vast supplier network, we know we play an important role in supporting and creating American jobs. Our 2017 plans to grow our business ? and our support for innovation in the textile industry ? will have a meaningful impact across the county."

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