A Target store in Manhattan, New York City on March 5, 2024.
Spencer Platt | Good pictures
target The retailer will report quarterly earnings on Wednesday as it tries to recover from a prolonged period of weak sales and profits.
Here’s what Wall Street expects for the Minneapolis-based retailer, according to a survey of analysts by LSEG:
- Earnings per share: $2.18
- Revenue: $25.21 billion
Target, known for its trendy but affordable merchandise, has been hit by paying more for everyday expenses like food and housing while buying less desirable items like new clothes or home decor. The company’s comparable sales have declined in each of the past four quarters. The industry metric, also known as same-store sales, takes the effect of one-time factors such as store openings and closings.
However, Target leaders said in May that the company was on track to return to sales growth in the second quarter. Target said full-year comparable sales would be flat to 2%, and adjusted earnings per share would be between $8.60 and $9.60.
Target is trying to recover sales and drive more traffic. In May, it announced price cuts on about 5,000 frequently purchased items, including diapers, milk and paper towels. The company relaunched its loyalty program earlier this year and introduced a new paid membership, Target Circle 360, which includes perks like free same-day deliveries. In July, Target ran its own sales event to compete AmazonFirst day of
Back-to-school is a big season for the retailer, as families typically shop for new shoes, clothes, backpacks, notebooks and more.
There are other indicators that can achieve the goal. According to the U.S. Commerce Department, consumer spending was stronger than expected in July, with advanced retail sales rising 1% compared to the previous month.
A big box competitor Walmart Its own quarter last week beat Wall Street’s expectations and shook off fears that consumer health had worsened. Chief Financial Officer John David Rainey told CNBC that customers should “be selective and be prudent.” [and] looking for value,” but he added, “We don’t see any additional baldness in consumer health.”
However, Target’s sales mix looks different than Walmart’s. Only 23% of Target’s revenue comes from groceries, compared with 60% for Walmart’s U.S. business, according to the companies’ most recent annual filings.
Additionally, Walmart’s quarterly results could threaten the target. In an earnings call last week, Rainey said most of Walmart’s market share gains come from higher-income households — consumers who may choose Walmart’s stores and website over other retailers such as Target.
Shares of Target closed at $144.33 on Tuesday. As of Tuesday’s close, the company’s stock had risen about 1% so far this year. That’s behind the S&P 500’s roughly 17% gains over the same period.
