Target Corp. shares were losing more than 8 percent in pre-market activity on the NYSE after the general merchandise retailer reported weak profit, sa
Target Corp. shares were losing more than 8 percent in pre-market activity on the NYSE after the general merchandise retailer reported weak profit, sales and comparable sales in its first quarter. Earnings per share missed the Street estimates. Further, the company issued second-quarter outlook and maintained fiscal 2024 forecast.
For the second quarter, the company expects earnings per share, on a reported and adjusted basis, to be $1.95 to $2.35, with a 0 to 2 percent increase in its comparable sales.
For fiscal 2024, the company continues to expect earnings per share, on a reported and adjusted basis, of $8.60 to $9.60 with a 0 to 2 percent increase in its comparable sales.
Analysts on average expect the company to report earnings of $2.19 per share for the quarter and $9.43 per share for the year, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.
In the first quarter, Minneapolis-based Target’s bottom line totaled $942 million or $2.03 per share, 0.8 percent lower than $950 million or $2.05 per share in last year’s first quarter. Analysts had expected the company to earn $2.05 per share.
First-quarter operating income of $1.30 billion was 2.4 percent lower than last year, driven by lower sales volume.
Total revenue of $24.53 billion was 3.1 percent lower than last year’s $25.32 billion, reflecting a total sales decline of 3.2 percent from the prior year to $24.14 billion, despite a 3.9 percent increase in other revenue.
Comparable sales declined 3.7 percent in the first quarter, reflecting a comparable store sales decline of 4.8 percent, partially offset by a comparable digital sales increase of 1.4 percent.
Brian Cornell, chair and chief executive of Target, said, “Our first quarter financial performance was in line with our expectations on both the top and bottom line, tracking the trajectory we outlined for this year and setting up a return to growth in the second quarter. Our topline performance improved for the third consecutive quarter, with growth in our digital business led by strength in our same-day fulfillment services.”
In pre-market activity on the NYSE, Target shares were losing around 8.5 percent to trade at $144.37.
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