Target reports Q1 comparable sales decline of 3.7 percent

Target reported first quarter GAAP and adjusted earnings per share of 2.03 dollars compared with 2.05 dollars in 2023.

The company’s first quarter comparable sales declined 3.7 percent, reflecting a comparable store sales decline of 4.8 percent partially offset by a comparable digital sales increase of 1.4 percent. Total revenue of 24.5 billion dollars was 3.1 percent lower than last year, reflecting a total sales decline of 3.2 percent and a 3.9 percent increase in other revenue.

"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.

First quarter operating income of 1.3 billion dollars was 2.4 percent lower than last year, driven by lower sales volume, while operating income margin rate was 5.3 percent compared with 5.2 percent in 2023 and gross margin rate was 27.7 percent, compared with 26.3 percent last year.

For the second quarter, the company expects a 0 to 2 percent increase in its comparable sales, and GAAP and adjusted EPS is forecasted to be in the range of 1.95 dollars to 2.35 dollars.

For the full year, the company continues to expect a 0 to 2 percent increase in its comparable sales, and GAAP and adjusted EPS to be between 8.60 dollars to 9.60 dollars.

The company paid dividends of 508 million dollars during the quarter under review, reflecting a 1.9 percent increase in the dividend per share.