Target Reports First Quarter 2018 Earnings

First quarter traffic growth of 3.7 percent is the strongest quarterly performance in over 10 years.
First quarter digital sales increased 28 percent, on top of 21 percent growth in first quarter 2017.
GAAP EPS from continuing operations were $1.33, up 9.1 percent from last year. Adjusted EPS1 were $1.32, up 9.4 percent from last year.
The Company saw broad market share gains across its core merchandise categories.
In the first quarter the Company completed 56 remodels, opened 7 new stores, introduced 3 new brands and a successful limited-time collaboration with Hunter, launched its new Drive-Up service in more than 250 stores, expanded Target Restock nationwide and rolled out same-day delivery from more than 700 stores, enabled by its recent acquisition of Shipt.
In the second quarter, Target expects an acceleration in its comparable sales into the low to mid single-digit range.
The midpoint of Target’s second quarter EPS guidance range is approximately 15 percent higher than second quarter 2017 GAAP EPS from continuing operations of $1.21 and Adjusted EPS of $1.22.
For additional media materials, please visit:
https://corporate.target.com/article/2018/05/q1-2018-earnings

Target Corporation (NYSE: TGT) today announced its first quarter 2018 financial performance2, including first quarter comparable sales growth of 3.0 percent and 3.7 percent traffic growth. The Company reported GAAP earnings per share (EPS) from continuing operations of $1.33 in first quarter 2018, up 9.1 percent from $1.21 in first quarter 2017. First quarter Adjusted EPS were $1.32, up 9.4 percent from $1.20 in first quarter 2017. The attached tables provide a reconciliation of non-GAAP to GAAP measures. All earnings per share figures refer to diluted EPS.

“We’re very pleased that our business continued to generate strong traffic and sales growth in the first quarter, as we made significant progress in support of our long-term strategic initiatives,” said Brian Cornell, chairman and chief executive officer of Target Corporation. “Our first quarter performance reflects the benefit of our unique multi-category portfolio. Strong sales growth in our home, essentials and food & beverage categories offset the impact of delayed sales in temperature-sensitive categories, which accelerated rapidly in recent weeks as weather improved across the country. Additionally, our team is delivering excellent execution and guest service every day, and momentum in our traffic has accelerated in the second quarter. As a result, we expect Target’s second quarter comparable sales growth will move into the low to mid single-digit range, and the midpoint of our second quarter EPS guidance represents approximately 15 percent growth over last year.”

Total revenue of $16.8 billion increased 3.4 percent from $16.2 billion last year, reflecting sales growth of 3.5 percent combined with a slight decline in other revenue. First quarter sales growth reflected comparable sales growth of 3.0 percent combined with the contribution from non-mature stores. Comparable digital channel sales grew 28 percent and contributed 1.1 percentage points of comparable sales growth. Operating income was $1,041 million in first quarter 2018, down 9.9 percent from $1,155 million in 2017.

First quarter operating income margin rate was 6.2 percent, compared with 7.1 percent in 2017. First quarter gross margin rate was 29.8 percent, compared with 30.0 percent in 2017, reflecting pressure from digital fulfillments costs and sales mix, partially offset by the benefit of the Company’s cost saving efforts and the net impact of changes to the Company’s pricing and promotions. First quarter SG&A expense rate was 21.1 percent in 2018, compared with 20.7 percent in 2017, driven by higher compensation costs, including investments in store team member hours and wage rates.
more detail at: http://investors.target.com/phoenix.zhtml?c=65828&p=irol-newsArticle&ID=2350388

Related Posts

Wenner Puts ‘Rolling Stone’ Up For Sale

Wenner Media is selling Rolling Stone, its last magazine brand, just shy of its 50th anniversary. The publisher sold its other two magazines, Us Weekly and Men’s Journal, to American Media Inc. earlier this year. It continues to publish Glixel, its video-games site launched last November. “I love my job, I enjoy it, I’ve enjoyed it for a long time,” founder Jann Wenner, 71, told The New York Times, which broke the story. Wenner added that letting go of the title is “just the smart thing to do.” “Publishing is a completely different industry than what it was,” he told the NYT. “The trends go in one direction, and we are very aware of that.” Once known as the counterculture music, pop-culture and entertainment magazine founded by Wenner in 1967, the publication has recently been caught in controversy. That includes a huge blow to its reputation when it retracted a discredited 2014 article about a rape at the University of Virginia. Rolling Stone was hit with three libel lawsuits as a result, and has had to pay $3 million in damages. Click Read More below for more of the story.

Walmart Announces 3-for-1 Stock Split

Walmart Inc. announced that it will conduct a split of its outstanding shares of common stock at a ratio of 3:1. The stock split is part of Walmart’s ongoing review of optimal trading and spread levels and its desire for its associates to feel that purchasing shares is easily within reach. More than 400,000 associates participate in Walmart’s Associate Stock Purchase Plan today, which allows eligible associates to buy stock conveniently through payroll deductions and provides a 15% company match on the first $1,800 each year. “Sam Walton believed it was important to keep our share price in a range where purchasing whole shares, rather than fractions, was accessible to all of our associates,” said Doug McMillon, President and CEO of Walmart. “Given our growth and our plans for the future, we felt it was a good time to split the stock and encourage our associates to participate in the years to come. As Sam said, ‘We’re all in this together. That’s the secret.’”

Average USPS Mail Delivery Time Nationally Since January: 2.7 Days

The United States Postal Service reported new delivery performance metrics showing the average time to deliver a mailpiece across the postal network was 2.7 days in the first five weeks of the fiscal year second quarter. Throughout January, winter storms across the nation created hazardous road conditions and impacted the air transportation network resulting in delays for middle mile mail and package transit. The Postal Service continues to implement mitigation plans to move mail and packages effectively across the nation. Additional second quarter service performance scores covering Jan.1 through Feb. 11 included: *First-Class Mail: 86.1 percent of First-Class Mail delivered on time against the USPS service standard, a decrease of 3 percentage points from the fiscal first quarter. *Marketing Mail: 90.9 percent of Marketing Mail delivered on time against the USPS service standard, a decrease of 1.3 percentage points from the fiscal first quarter. *Periodicals: 79.5 percent of Periodicals delivered on time against the USPS service standard, a decrease of 1.4 percentage points from the fiscal first quarter.
Back To Top
×Close search
Search