
Target Q2 profit beats forecasts, but sales decline again
Shares dropped despite strong profits, as investors reacted to weak traffic and CEO Brian Cornell's plan to step down for executive Michael Fiddelke.
Shares dropped despite strong profits, as investors reacted to weak traffic and CEO Brian Cornell's plan to step down for executive Michael Fiddelke.
Performance was impacted by the closure of underperforming Stop & Shop stores and lower gasoline sales.
CEO Steve Cahillane acknowledged that “demand softness in most of our categories did not improve as much as we had hoped.”
“We delivered solid operating and financial performance while investing in our core operations and enhancing our customer value proposition.”
Total revenue for the quarter was $45.1 billion, compared to $45.3 billion in Q1 2024, which included $917 million in sales from Kroger Specialty Pharmacy.
“Our strong first quarter performance underscores the progress we’ve made against our strategic priorities.”
“Our efforts to improve execution and enhance the associate and customer experience are yielding positive outcomes.”
"As the economic outlook remains fluid, our ability to deliver consistent value and service continues to resonate with members.”
NRF’s Chief Economist, Jack Kleinhenz, emphasized that the economy remains resilient.
Global ecommerce sales soared 22%, fueled by robust performance in store-fulfilled pickup & delivery and marketplace offerings.
“The possibility of a U.S. recession in the near future has increased due to rising trade tensions and other economic factors, but it hasn’t happened yet,” NRF chief economist Jack Kleinhenz said.
In Q1, U.S. online sales increased by 17.9% in constant currency, driven by double-digit online growth, led by strong growth at Food Lion.
Albertsons Cos. anticipates earnings will be below expectations this year, as the ongoing trade war could lead to higher prices and negatively impact consumer demand.
“We finished 2024 on a high note with strong execution at Dollar Tree as growing customer acceptance of our expanded assortment drove sales momentum,” said CEO Mike Creedon.
DG's Q4 profits hurt by portfolio review, store closings.
The company aims to enhance the digital experience, value, and speed to elevate the consumer shopping journey.