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Target Shares Plunge 8% Following Q1 Profit Miss
May 22, 2024 12:51 PM - Davit Kirakosyan
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Target's (NYSE:TGT) shares fell over 8% in pre-market today after the company released its latest quarterly earnings, which did not meet profit expectations.
The retailer reported Q1 earnings per share (EPS) of $2.03, falling short of the $2.06 analyst estimate. The quarter's revenue was $24.53 billion, slightly above the $24.51 billion Street estimate.
Compared to the same quarter last year, Target's revenue dropped by 3.1%, and comparable sales decreased by 3.7%. However, digital comparable sales increased by 1.4%, and same-day services grew by nearly 9%, mainly due to a 13% increase in Drive Up.
Brian Cornell, Target Corporation's chair and CEO, noted that the first-quarter financial performance met expectations for both revenue and profit, aligning with the company's projections for the year and setting the stage for growth in the second quarter. He also mentioned the successful relaunch of the Target Circle loyalty program, which gained over 1 million new members during the quarter.
Looking forward, Target predicts a 0 to 2 percent increase in comparable sales for the second quarter, with adjusted EPS expected to be between $1.95 and $2.35. For the full year, the company anticipates a similar rise in comparable sales and an adjusted EPS range of $8.60 to $9.60.
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