Revenue target drops to start the year, but sees improvement

NEW YORK — Target reported a decline in quarterly sales on Wednesday as higher prices reduced consumer spending.

The Minneapolis retailer also posted earnings results that were below analyst expectations and gave a muted profit outlook, but expects to return to quarter-over-quarter sales growth this quarter.

Shares fell nearly 8% in premarket trading on Wednesday.

The company is looking for ways to reverse declining sales. On Monday it said it would cut prices on thousands of consumer staples in the coming months, from diapers to milk, in a bid to lure customers looking for deals.

And it's also trying to make shopping at Target more convenient and enjoyable to better compete with Walmart and Amazon.com.

Target announced a new paid membership program in April called Target Circle 360, which comes with unlimited free same-day delivery on orders over $35 and free two-day shipping on all orders. The $99 annual membership is well received, the company says.

The company is modernizing existing locations, building more than 300 new stores over the next decade and also broadening its own brand offering for more price-conscious customer choices.

Target reported net income of $942 million, or $2.03 per share, which is 3 cents short of analyst expectations, according to a FactSet survey. Profit for the period ended May 4 was also below last year's $950 million, or $2.05 per share.

Revenue fell 3.1% to $24.53 billion, slightly better than the $24.52 billion Wall Street expected.

Comparable turnover – that of stores or digital channels that have been active for at least twelve months – fell by 3.7%. That was a smaller decline compared to the 4.4% decline in the fourth quarter.

The sales declines occurred primarily in discretionary categories and were partially offset by continued growth in beauty products, the company said. But Target said that while apparel sales were still down, they were improving.

For the second quarter, Target expects comparable sales to increase unchanged by up to 2%. It expects to earn between $1.95 and $2.35 per share. Analysts expect $2.20 per share.

For the full year, Target continues to expect comparable sales to rise no more than 2%. Earnings per share should be between $8.60 and $9.60. Analysts expect $9.49, according to FactSet.

Related Posts

  • Business
  • June 15, 2024
  • 1 views
  • 3 minutes Read
Salesforce (CRM) Q1 2025 Earnings Report

Marc Benioff, CEO of Salesforce, will appear on a panel at the World Economic Forum in Davos, Switzerland on January 18, 2024. Stefan Wermuth | Bloomberg | Getty Images Sales…

  • Business
  • June 15, 2024
  • 3 views
  • 4 minutes Read
You may owe the IRS money on Monday; skipping payment could cost you hundreds of dollars

Yellen says IRS audits have increased to focus on the very wealthy Yellen says IRS audits have increased to focus on the very wealthy 02:39 Some taxpayers may not be…

Leave a Reply

Your email address will not be published. Required fields are marked *

You Missed

New Jersey Senator Bob Menendez's strategy to blame his wife in a bribery trial could have pitfalls

  • June 15, 2024
New Jersey Senator Bob Menendez's strategy to blame his wife in a bribery trial could have pitfalls

FTC Chair Lina Khan on Startups, Scaling and 'Innovations in the Field of Possible Law Violations'

  • June 15, 2024
FTC Chair Lina Khan on Startups, Scaling and 'Innovations in the Field of Possible Law Violations'

Following a routine makes it easier to build wealth. Here's how

  • June 15, 2024
Following a routine makes it easier to build wealth.  Here's how

Investors are wondering whether technology can continue to lift the S&P 500 to new records this summer

  • June 15, 2024
Investors are wondering whether technology can continue to lift the S&P 500 to new records this summer

New research approach: investigating the mouthfeel of food with a microscope

  • June 15, 2024
New research approach: investigating the mouthfeel of food with a microscope

Salesforce (CRM) Q1 2025 Earnings Report

  • June 15, 2024
Salesforce (CRM) Q1 2025 Earnings Report

Quantum entanglement measures the rotation of the Earth

  • June 15, 2024
Quantum entanglement measures the rotation of the Earth

DOJ Destroys GOP Conspiracy That Controlled New York Trial

  • June 15, 2024
DOJ Destroys GOP Conspiracy That Controlled New York Trial

Nvidia's 'Nemotron-4 340B' model redefines synthetic data generation and competes with GPT-4

  • June 15, 2024
Nvidia's 'Nemotron-4 340B' model redefines synthetic data generation and competes with GPT-4

China needs bond market reforms to rein in rising debt, S&P Global says

  • June 15, 2024
China needs bond market reforms to rein in rising debt, S&P Global says

The tasty flavors of chocolate can pose a risk in other desserts

  • June 15, 2024
The tasty flavors of chocolate can pose a risk in other desserts