Target Corporation (NYSE: TGT) rumbled out of the starting blocks Thursday morning, after the company issued a strong forecast the second quarter. The company now expects Q2 earnings above the high-end of its earlier issued outlook.
As a result of improved traffic and sales trends through the first two months of the quarter, Target is now expecting to report a modest increase in its second-quarter comparable sales. In addition, the Company now expects to report second quarter GAAP and Adjusted EPS above the high end of its previous guidance range of $0.95 to $1.15.
Both GAAP and Adjusted EPS are expected to reflect a five- to nine-cent benefit driven by the net tax effect of the Company’s global sourcing operations. In addition, GAAP EPS is expected to reflect two to three cents of pressure related to the unfavorable resolution of tax matters. Target plans to report its second quarter 2017 financial results on Wednesday, August 16.
Brian Cornell, CEO of the Minneapolis-based chain, declared, ““Target’s recent progress reinforces our confidence and commitment to our strategy as we build an even better Target for tomorrow. Following better-than-expected results in the first quarter, we’ve seen additional, broad-based improvement in traffic and category sales trends in the second quarter, despite continued challenges in the competitive environment.”
The positive energy created by Target’s tidings rubbed off on many of its competitors in the retail business – chains such as Macy’s and Wal-Mart.
Target shares jumped $1.75 each, or 3.8%, to $52.78, in late morning trading on Thursday.
