Target Corporation reported weak first-quarter results, missing earnings estimates due to continued pressure on discretionary spending. The company’s sales fell by 3.2%, with comparable sales down 3.7% and store sales decreasing by 4.2%, while online sales saw a modest increase of 1.2%. Net income also declined by 0.8%. Target remains cautious about consumer spending, particularly in discretionary categories, as higher interest rates, economic uncertainty, and high credit-card balances weigh on consumer confidence. Despite some growth in beauty products and a nearly 4 percentage point improvement in apparel sales compared to the previous quarter, the overall trend in discretionary spending remains soft. The company has forecasted current-quarter comparable sales and profit to be largely below Wall Street expectations. Target's pre-market trading showed a decline of 9.7%. The results were underwhelming compared to Walmart's recent report, and the company is investing in price to attract customers.
$TGT (-9.7% pre) Target earnings miss, sales fall as consumers buy fewer groceries and home goods - CNBC https://t.co/9oHS7CKPMT
Bloomberg: Target Corp. said a key measure of sales fell for the fourth consecutive quarter and the retailer remains cautious about discretionary spending for the coming months Consumer is stretched?
$TGT on Q1 24 performance: "Sales declines, primarily in discretionary categories, were partially offset by continued growth in Beauty. Discretionary sales trends continued to improve vs. prior quarters, led by an improvement of nearly 4 pps in apparel Vs Q4 23" https://t.co/zp2j3qcq0V
$TGT CGO: "Higher interest rates, economic uncertainty, high credit-card balances and other factors have [consumers] concerned, and consumer confidence took a meaningful dip in April. For these reasons and more even if we see sequential improvement in discretionary category… https://t.co/j63mxLzh6T
$TGT CEO on the state of the consumer: "They continue to show resiliency...They’re also continuing to normalize their mix of spending back into services & out of home entertainment. That’s contributing to continuing soft trends in discretionary categories"
$TGT CEO on the state of the consumer: "They continue to show resiliency in the face of challenges...They’re also continuing to normalize their mix of spending back into services and out of home entertainment. That’s contributing to continuing soft trends in discretionary…
Target Q1 results: 💵 Sales: -3.2% 💰 Comp sales: -3.7% 🏪 Store sales: -4.2% 📱 Online sales: +1.2% 📉 Net income: -0.8% Gloomy. Target losing customers and share. No wonder there's an investment in price! But it's not just about price, store experience is deteriorating too.
$TGT Target's results are underwhelming (esp. vs. Walmart's report last week) https://t.co/hXwSlWKFCq
Target's sales fell for the fourth consecutive quarter and it remains cautious about consumers' discretionary spending https://t.co/usWbap9aqn
⚠️ TARGET POSTS WEAK RESULTS AS DISCRETIONARY SPENDING REMAINS PRESSURED Full Story → https://t.co/THces3xNE4 Target on Wednesday forecast current-quarter comparable sales and profit largely below Wall Street expectations after weak discretionary spending dented its… https://t.co/Xl14lk35cJ
Target Misses Earnings Estimates. Discretionary Demand Is Still Under Pressure. https://t.co/uUVZblAQ9Z
Happy $TGT morning, where expectations are insanely low. Last Q Target guided to a negative Q1 w/ a recovery starting right... about... now, in Q2. (Cheat Sheet Attached) America has never needed the upper middle-class discretionary spender more than we do right now. https://t.co/pJGWLpeoay