On May 20, 2024, a customer shopped at a Target store in Miami, Florida.
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Target The company will report fiscal first-quarter earnings on Wednesday, days after saying it would lower prices on thousands of groceries and daily items.
The Minneapolis-based retailer has lower expectations for the year ahead. The company said in early March that it expected full-year comparable sales to be flat to grow 2%, and adjusted earnings per share to be between $8.60 and $9.60.
According to a survey of analysts by London Stock Exchange Group (LSEG), Wall Street’s expectations for the company are as follows:
- Earnings per share: $2.06
- income: US$24.52 billion
That meant sales were down from $25.32 billion in the same period last year.
Like other retailers, Target has to contend with demand from consumers who are still unable to freely purchase clothing, home goods or other non-essential items due to price fatigue. The cheap, chic retailer is particularly affected by this dynamic because it generates fewer sales from food than rival Walmart, which gets about 60% of its U.S. sales from groceries. By comparison, Target’s ratio is about 20%.
Inflation cooled slightly in April, but the consumer price index still rose 3.4% compared with the same period last year. Key metrics measure the cost of goods and services at the cash register.
Walmart Last week, the company’s profit and revenue beat Wall Street forecasts, it 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 fast food is so expensive, customers are turning to grocery stores for cheaper food.
Some of Walmart’s new customers or regular shoppers may come from Target.
Target earlier this week acknowledged consumer fatigue with inflation and competition from discounters such as Walmart and Aldi by cutting prices. Target said most of the discounts are focused on grocery staples, including milk, meat, bread, fruits and vegetables, as well as paper towels and diapers.
need to be updated: Target’s stock price closed at $TK on Tuesday, giving it a market capitalization of $TK. As of Tuesday’s close, Target shares were up/down TK%, lagging/leading the S&P 500.
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