Target (TGT) delivered a stronger-than-expected first-quarter performance, beating Wall Street estimates and raising its full-year sales outlook.
The retailer reported earnings of $1.71 per share, surpassing the consensus estimate of $1.43.
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Net sales rose 6.7% year over year to $25.4 billion, exceeding the market forecast of $24.1 billion.
Comparable sales grew 5.6%, well above the estimated 1.85%.
Key Financial Metrics
Gross profit margin improved to 29% from 28.2% a year earlier, beating the projected 26.98%. Digital comparable sales surged 8.9%.
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Inventory levels fell 5.3% compared to the same period last year. Customer transactions increased 4.4%, while the average transaction value rose 1.1%.
The company did not repurchase any shares during the quarter.
Outlook and Guidance
Target raised its full-year sales growth target to approximately 4%, doubling its previous guidance of 2%.
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Full-year earnings per share are expected to reach the higher end of the original $7.50 to $8.50 range.
This compares to fiscal 2025 earnings of $7.57 per share and Wall Street estimates of $8.08.
Management anticipates sequential sales growth for each remaining quarter of the fiscal year.
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CEO Michael Fiddelke noted that consumer activity showed broad-based strength across regions and merchandise categories. The company remains focused on pricing sharpness amid ongoing economic pressures.
