TGT reports Q1 EPS of $1.71 and revenue of $25.44 billion, exceeding forecasts, but flags near-term cost pressures.
Target Corp reported first-quarter earnings per share of $1.71, surpassing the $1.46 analyst estimate, as revenue climbed to $25.44 billion against expectations of $24.66 billion. Comparable sales rose 5.6%, the strongest growth in four years, driven by an 8.9% increase in digital sales and a 4.4% rise in customer traffic.
The retailer’s performance outpaced consensus forecasts, with non-merchandise revenue streams growing nearly 25%. Despite the beat, Target cautioned that cost pressures would intensify in the first half of the year, particularly in Q2, citing an uncertain operating environment.
Target raised its full-year sales growth outlook to approximately 4% from 2% and expects EPS toward the high end of its $7.50 to $8.50 guidance range. Shares declined following the warning on near-term cost challenges.