On March 5, 2024, a Target store is seen in Manhattan, New York City.
Spencer Platt |
Goal will report its quarterly results on Wednesday because the retailer tries to get back on its feet after a chronic period of weaker sales and profits.
Here are Wall Street’s expectations for the Minneapolis-based retailer, in accordance with an analyst survey conducted by LSEG:
- Earnings per share: $2.18
- Revenue: 25.21 billion US dollars
Target, known for its big selection of stylish but inexpensive goods, has suffered throughout the crisis as consumers buy fewer high-value items resembling recent clothes or home accessories while spending more on on a regular basis expenses resembling food and housing. The company’s comparable sales have declined over the past 4 quarters. The industry metric, also referred to as same-store sales, excludes the impact of one-time aspects resembling store openings and closings.
Still, Target officials said in May that the corporate was heading in the right direction to return to sales growth within the second quarter. Target said full-year comparable sales could be between flat and up 2%, and adjusted earnings per share could be between $8.60 and $9.60.
Target has taken steps to spice up sales and attract more customers. In May, the corporate announced it would scale back prices on about 5,000 commonly purchased items, including diapers, milk and paper towels. Earlier this yr, the corporate relaunched its loyalty program and introduced a brand new paid membership, Target Circle 360, that features perks like free same-day delivery. Target also held its own sales event in July to compete with the opposite retailers. Amazon‘s Prime Day.
Back-to-school season can be a crucial time of yr for the retailer, as families typically purchase recent shoes, clothing, backpacks, notebooks and more during this time.
There are other indicators that would bode well for Target. Consumer spending was stronger than expected in July. According to the U.S. Department of Commerce, retail sales rose 1 percent in July in comparison with the previous month.
Big-box competitor Walmart last week beat Wall Street expectations for its own quarter, shrugging off fears that consumer health had worsened. Chief Financial Officer John David Rainey told CNBC that customers “remain picky and demanding.” [and] Value-seeking,” but added: “We see no additional impact on consumer health.”
But Target’s revenue mix is ​​different from Walmart’s. Only 23 percent of Target’s revenue comes from grocery, compared to about 60 percent at Walmart in the U.S., according to the two companies’ most recent financial statements.
In addition, Walmart’s quarterly results could put Target at risk. On a conference call last week, Rainey said Walmart’s market share gains come primarily from high-income households – customers who may prefer Walmart’s stores and website to other retailers like Target.
Target shares closed at $144.33 on Tuesday. Through Tuesday’s close, the company’s stock has risen about 1 percent so far this year, lagging the S&P 500’s gain of about 17 percent over the same period.
