Discount retailer Target’s (TGT) latest financial results surpassed Wall Street estimates as the company’s years long turnaround plan finally takes hold.
The Minneapolis-based company announced earnings per share (EPS) of $1.71 U.S., which topped the $1.46 U.S. consensus expectation of analysts.
Revenue in this year’s first quarter totaled $25.44 billion U.S., which exceeded the $24.64 billion U.S. forecast on Wall Street. Target’s sales were the largest since 2021.
The company’s gross margin came in at 29% for this year’s first quarter, beating Wall Street estimates that called for 28.7%.
And same-store sales rose 5.6% in the latest quarter, the first positive same-store sales number in five quarters.
Management said that consumers are turning to Target for deals amid high gas prices and stubborn inflation that has elevated prices.
Target said its ongoing turnaround strategy remains focused on improving its merchandising, guest experience, and technology as it hopes to return to long-term sustainable growth.
In recent years, Target has lost ground to rivals such as Walmart (WMT) that have lured in customers with expanded grocery and food offerings.
Looking ahead, Target raised its full-year revenue outlook, saying it now expects sales growth of 4% compared to 2025, an increase of two percentage points from its previous outlook.
The company also expects its earnings per share (EPS) to come in near the high end of its previous guidance range of $7.50 U.S. to $8.50 U.S.
Analysts were expecting earnings of $8.14 U.S. per share from Target this year.
TGT stock has gained 30% in the last 12 months to trade at $127.24 U.S. per share.
