A customer shops at a Target store in Miami, Florida on May 20, 2024.
Joe Raedle | Getty Images
Goal will report its first-quarter results on Wednesday, just days after it said it would cut prices on thousands of groceries and everyday items.
The Minneapolis-based retailer has set low expectations for the coming year. In early March, it said it expected full-year comparable sales to be flat to 2% and adjusted earnings per share to be between $8.60 and $9.60.
Based on an analyst survey by LSEG, Wall Street expects the following for the company:
- Earnings per share: $2.06
- Revenue: $24.52 billion
That would represent a decline in sales compared to $25.32 billion in the same quarter last year.
Similar to other retailers, Target has struggled with consumers who are still reluctant to spend as generously on clothing, home goods or other necessities due to price fatigue. The cheap, chic retailer is particularly affected by this dynamic because it generates less grocery sales than its rival Walmart, which gets about 60% of its U.S. sales from groceries. That compares to about 20% at Target.
Inflation cooled slightly in April, but the consumer price index still rose 3.4% year-on-year. The central metric measures how much goods and services cost at the checkout.
Walmart beat Wall Street’s profit and revenue expectations last week as the company reported double-digit e-commerce growth and said it was gaining market share from higher-income shoppers. The company’s chief financial officer, John David Rainey, also said that because of the high prices of fast food at grocery stores, customers are looking for cheaper meals.
Some of Walmart’s newer or more frequent shoppers may come from Target.
With its price cuts earlier this week, Target acknowledged consumers’ fatigue with inflation — and competition from discounters like Walmart, Aldi and others. Target said it will focus most of its discounts on staples like milk, meat, bread, fruits and vegetables, as well as paper towels and diapers.
Needs to be updated: Target’s shares closed at TK$ on Tuesday, bringing their market value to TK$. As of Tuesday’s close, Target’s shares are up/down TK%, trailing/leading the S&P 500.
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2024-05-22 04:01:01
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