Posted May 17, 2023 16:16
Investing.com – US retail giant Target Inc (NYSE:TGT) reported mixed earnings.
Profits recorded 25.32 billion dollars for the first quarter of 2023, while experts expected it to record 25.37 billion dollars. The company succeeded in achieving earnings per share of 2.05, higher than experts’ expectations, by recording $1.79.
The most important financial statements / h2
Net sales: +0.6% yoy to $25.3 billion versus estimates of $25.18 billion
Gross profit margin: 26.3% vs. 25.7% a year ago and estimates at 26.52%
Inventory growth: -16% yoy vs -5.1% estimates
Diluted earnings per share: -6.2% yoy to $2.05 vs. estimates of $1.80
How is the stock trading now and what does the data mean for the US economy?/h2
Target’s stock rose slightly before the opening, after the earnings announcement, as the stock rose 1.09% to $158.62.
The company said that total sales of Target rose 0.5% over the fourth quarter from last year. But digital sales have slumped, and the company said shoppers have pushed back on discretionary purchases in what Chief Executive Brian Cornell described as a “very difficult environment” for consumers.
Target (TGT) sales in stores open for at least one year increased 0.7%, and the company said customers are spending more on food and essentials. Earnings fell 5.8% in the quarter.
It’s the latest retailer to say shoppers have backed away from items like clothing and home goods and switched to groceries and essentials. Low- and middle-income consumers were pressured more by higher prices.
Read also | An arrow dropped by the US Federal Reserve..Are markets waiting for Target’s profits to fall? InvestingPro
Get the app
Join the millions of users who get the latest market news at full speed on Investing.com
Written by: Investing.com