THE WHAT? Target has announced its results for the first quarter of fiscal 2023. The US retailer saw sales rise 0.5 percent for total revenue of US$25.3 billion, reflecting flat comparable sales combined with the benefit of sales from new locations. Traffic grew 0.9 percent.
THE DETAILS Operating income dipped 1.4 percent yoy to US$1.3 billion. EPS was down 4.8 percent to US$2.05 from the same period in 2022 and, based on softening sales trends in the first quarter, the company is forecasting a low-single digit decline in comparable sales in the second quarter while GAAP EPS and Adjusted EPS are both expected to range from $1.30 to $1.70. The company is maintaining its guidance for the full year.
THE WHY? Brian Cornell, Chair and CEO of Target Corporation, said, “We came into the year clear-eyed about the challenges consumers are facing, and we were determined to build on the trust we’ve established with our guests. It’s required agility and the ability to flex across our multi-category portfolio as we lean into value and the product categories our guests need most right now. Thanks to the team’s dedication, we saw an increase in guest traffic in Q1, with total sales increasing and profitability ahead of expectations.”