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MINNEAPOLIS — Target Corp. said Wednesday that its first quarter profit rose 52% on a revenue increase of 3% to $17.1 billion. The company said it earned $1.10 per share in the period, up from 70 cents a share a year ago.
Target Corp. said Wednesday that its first quarter profit rose 52% on a revenue increase of 3% to $17.1 billion. The company said it earned $1.10 per share in the period, up from 70 cents a share a year ago.
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Same-store sales rose 2.3% in the quarter ended May 2, bolstered by a 38% jump in online sales and increased store traffic.
Target also boosted its guidance for full-year earnings to between $4.50 and $4.65 per share, from its prior forecast of between $4.45 and $4.65 per share. The retailer expects second quarter earnings of $1.04 to $1.14 a share.
"We’re pleased with our first quarter traffic and sales, particularly in our signature categories, which drove better-than-expected profitability through improved gross margin and continued expense management," said Brian Cornell, Target’s chairman and chief executive officer.
Cornell has been leading an overhaul at Target that aims to reconnect the retailer with its customers and return excitement to its stores by reemphasizing a few core merchandising categories — fashion, health and beauty, housewares, children’s offerings — that not long ago bolstered Target’s reputation as an “upscale discounter” with appeal to a broad range of shoppers.
Target said first quarter sales in its signature categories of style, baby, wellness and kids grew more than double compared to the rest of the company’s sales.
Since taking over last August, Cornell has also sought to accelerate Target’s push into online sales, as well as into new neighborhoods via smaller-format stores. Another priority of Cornell’s is a major revamp of Target’s grocery department, with more fresh and natural food items.
