TGT Target Corp

By Colin Kellaher

Target on Wednesday posted fiscal second-quarter earnings that topped Wall Street's expectations, but sales fell shy of estimates, and the retailer cut its full-year guidance amid expectations of continued top-line challenges.

The Minneapolis company reported net income of $835 million, or $1.80 a share, for the quarter ended July 29, more than quadruple its earnings of $183 million, or 39 cents a share, a year earlier, and ahead of the $1.43 a share that analysts polled by FactSet, on average, were expecting.

But revenue fell 4.9% to $24.77 billion, missing the $25.18 billion Wall Street was looking for, while comparable sales fell 5.4%.

Target said that given recent sales trends, it now expects full-year earnings of $7.00 to $8.00 a share, down from a May forecast of $7.75 to $8.75. Analysts polled by FactSet were anticipating a full-year profit of $7.72 a share.

Target also forecast current quarter earnings of $1.20 to $1.60 a share, well below the $1.82 analysts had penciled in.

The retailer also said it expects comparable sales in a wide range around a mid-single-digit decline for the third quarter and the rest of the year, which includes the critical holiday shopping season.

Write to Colin Kellaher at colin.kellaher@wsj.com

(END) Dow Jones Newswires

August 16, 2023 06:45 ET (10:45 GMT)

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