U.S. retailer Target’s (TGT) latest earnings have beat Wall Street forecasts on both the top and bottom lines.
The Minneapolis, Minnesota-based company reported net income in the quarter ended March 31 of $950 million U.S., or $2.05 U.S. per share, down from $1.01 billion U.S., or $2.16 U.S. a share, a year earlier. Analysts had expected earnings per share (EPS) of $1.76 U.S.
Revenue in the quarter rose nearly 1% from $25.17 billion U.S. a year ago, coming in slightly above analysts’ expectations.
Target maintained its full-year guidance, saying it now expects comparable sales will range from a low single-digit decline to a low single-digit increase for the current fiscal year.
The company said that it is seeing American consumers buy fewer discretionary items, though it is drawing people to its stores with groceries.
Comparable sales, a key retail metric, were flat in the first quarter compared with a year ago. That was in line with Wall Street’s expectations of 0.2% growth, according to Refinitiv data.
Target said it has had a difficult year due to squeezed profits and soft demand after seeing a surge of growth during the Covid-19 pandemic.
The company’s annual revenue jumped by $31 billion, or nearly 40%, from the fiscal year that ended in January 2020 to the fiscal year that ended this January.
Target’s inventory level declined 16% year-over-year at the end of the quarter, driven by a 25% reduction in discretionary merchandise items.
Target’s stock has fallen 27% in the last 12 months to trade at $156.91 U.S. per share.
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