Target Corp (NYSE:TGT) reported weaker-than-expected first-quarter earnings on Wednesday.
The company reported a first-quarter FY24 sales decline of 3.1% year-on-year to $24.531 billion, beating the analyst consensus estimate of $24.521 billion. Comparable sales declined 3.7% in the first quarter. Adjusted EPS of $2.03 missed the analyst consensus estimate of $2.06, according to data from Benzinga Pro.
Operating income margin rate of 5.3% was 10 basis points higher than last year, and the operating income for the quarter fell 2.4% to $1.3 billion.
"Our first quarter financial performance was in line with our expectations on both the top and bottom line, tracking the trajectory we outlined for this year and setting up a return to growth in the second quarter," said Brian Cornell, chair and chief executive of Target Corporation. "Our topline performance improved for the third consecutive quarter, with growth in our digital business led by strength in our same-day fulfillment services. Consumers continue to respond to the newness and value that we offer across our shopping experience, and we're pleased with early results from the relaunch of Target Circle."
Target sees second-quarter adjusted EPS of $1.95 – $2.35 against the Street view of $2.19. It expects 0% – 2% increase in comparable sales. The company continues to expect FY24 adjusted EPS of $8.60 – $9.60 versus an estimate of $9.43. It sees 0% – 2% increase in comparable sales.
Target shares fell 8% to close at $143.27 on Wednesday.
These analysts made changes to their price targets on Target after the company reported quarterly results.
- Telsey Advisory Group cut the price target on Target from $195 to $190. Telsey Advisory Group analyst Joseph Feldman maintained an Outperform rating.
- Morgan Stanley lowered Target price target from $190 to $180. Morgan Stanley analyst Simeon Gutman maintained an Overweight rating.
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