Target Q1 Earnings Miss Estimates, Comps Decline Y/Y
Target Corporation (NYSE: TGT) came up with first-quarter fiscal 2024 results, wherein the top line marginally came ahead of the Zacks Consensus Estimate, while the bottom line missed the same. However, both the metrics declined year over year. Soft sales in discretionary categories hurt the company’s performance, with comparable sales continuing with its dismal run. However, strength was seen in the beauty category.
Despite challenges, Target is poised to capture market share over time, driven by its compelling value proposition and a spectrum of initiatives. These encompass the expansion of new stores, innovations in brands, the enhancement of same-day services and the rollout of the Target Circle loyalty program to drive traffic.
Sales & Earnings Picture
Target reported adjusted earnings of $2.03 per share, which missed the Zacks Consensus Estimate of $2.05. Markedly, the bottom line declined 1% year over year.
The big-box retailer generated total revenues of $24,531 million, which decreased 3.1% year over year. However, the metric marginally beat the Zacks Consensus Estimate of $24,517 million. We note that sales dropped 3.2% to $24,143 million, while other revenues jumped 3.9% to $388 million.
Meanwhile, comparable sales fell 3.7% in the first quarter, following a drop of 4.4% in the preceding quarter. The metric reflected a comparable store …
Full story available on Benzinga.com