Target beats Wall Street estimates, hikes sales outlook as shoppers start to return
Target beat Wall Street earnings and revenue estimates in the first quarter and raised its full-year sales outlook, saying US shoppers are returning despite tariff pressures. Shares jumped roughly 9 percent in pre-market trading.
Target Corporation said Tuesday it earned $2.32 a share in the first quarter, beating the $2.11 consensus from analysts. Revenue rose 3.6 percent year-over-year to $24.5 billion, ahead of the $24.1 billion FactSet poll estimate. Comparable store sales grew 2.8 percent, the first positive quarter in more than a year.
CEO Brian Cornell said a refresh of the home and upscale baby categories drove the customer traffic gain. 'After a couple of years of transition, it's encouraging to see our customers coming back,' he said. The company added it has completed most of the supply-chain adjustments needed to absorb tariff costs.
Target raised its full-year comparable-sales growth outlook to a range of 0.5 to 2 percent, up from prior guidance of flat growth. Shares jumped about 9 percent in pre-market trading. Unlike Walmart and Costco, Target has lagged in discretionary spending over the past two years, making the quarterly result a meaningful inflection.
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