Target's Q1 Earnings: Falling Revenues and Comp Sales Weigh On Retailer, But Inventories Fall By 80%
Portfolio Pulse from Shivani Kumaresan
Target Corp (NYSE:TGT) shares are plunging after reporting lower-than-expected first-quarter FY24 adjusted EPS. Despite a 3.1% sales decline, the company beat revenue estimates but missed EPS expectations. Comparable sales fell 3.7%, with store sales down 4.8% and digital sales up 1.4%. Gross margin improved, but operating income fell. Target provided a mixed outlook for Q2 and FY24.
May 22, 2024 | 12:00 pm
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NEGATIVE IMPACT
Target Corp (NYSE:TGT) shares are down 7.82% in premarket trading after the company reported lower-than-expected Q1 FY24 adjusted EPS. Despite beating revenue estimates, the company missed EPS expectations and provided a mixed outlook for Q2 and FY24.
The lower-than-expected EPS and mixed outlook for Q2 and FY24 are likely to negatively impact investor sentiment, leading to a short-term decline in Target's stock price.
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