Target’s fiscal Q1 earnings surpass company expectations

MINNEAPOLIS — Target’s 2017 fiscal first-quarter comparable-store sales suffered a 1.3% year-over-year decrease, driven by small declines in both traffic and basket size. First quarter sales for the period ended April 29 also dipped slightly from $16.2 billion to $16 billion.

Adjusted earnings per share also slipped by 6.3% versus the prior year to $1.21 per share, but this far surpassed company guidance, which had been between 80 cents and $1 per share.

“Target’s first quarter financial performance was better than our expectations, reflecting strong execution by our team as they delivered for our guests in a very choppy environment. After starting the quarter with very soft trends, we saw improvement later in the quarter, particularly in March,” said Brian Cornell, chairman and CEO of Target. “We are in the early stage of a multi-year effort to position Target for profitable, consistent long-term growth, and while we are confident in our plans, we are facing multiple headwinds in the current landscape. As a result, we will continue to plan our business prudently while preparing our team to chase business when we have an opportunity.”

Target also offered guidance for its fiscal second quarter, as well as its fiscal 2017. For its current second quarter, Target expects a low single-digit decline in comparable sales, with adjusted earnings per share expected to come in at between 95 cents and $1.15 per share.

For fiscal 2017, Target also expects a low single-digit comparable sales decline.

As of April 29, Target operated 1,807 locations, 276 of which spanned 170,000 or more sq. ft., 1,505 measuring between 50,000 and 169,999 sq. ft., and 26 smaller-format stores encompassing 49,000 sq. ft. of space or less.