Target (TGT) April Sales Drop, But Earnings Picture Improves
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Price: $144.49 -0.01%
EPS Growth %: +10.2%
Financial Fact:
Depreciation and amortization: 570M
Today's EPS Names:
HFBL, PBHC, PBNK, More
EPS Growth %: +10.2%
Financial Fact:
Depreciation and amortization: 570M
Today's EPS Names:
HFBL, PBHC, PBNK, More
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Target Corp. (NYSE: TGT) announced an unexpectedly sharp downturn in revenue in April, due to shoppers spending more on Easter-related products the prior month. Despite the drop, Target said earnings will be better than expected.
The discount retailer reported that sales at stores open at least one year slipped 5.9 percent in the four weeks ended May 1, below the 2.3 percent drop that analysts had expected as Easter fell on an earlier date and caused holiday related purchases to be made in the previous month.
The combines same store sales for the combined March and April period rose 3 percent, and are up 2.8 percent year-to-date.
"April comparable-store sales were somewhat below our expectation. Based on our combined March and April results, we believe a greater-than-expected portion of sales that otherwise would have occurred in April were pulled forward into March," said Gregg Steinhafel, chairman, president and chief executive officer of Target Corporation.
The company said that higher-margin categories are performing well and that first-quarter net income will come in at least in line the 86 cents per share that is be being anticipated by analysts.
"April sales in our higher margin categories remained particularly strong, and both of our business segments continued to outperform their respective profit plans for the first quarter," Steinhafel said.
Total sales in for Target in April fell 4 percent compared to last year to $4.29 billion from $4.45 billion.
Shares of Target are down 0.55 percent to $55.75 in mid-day trading.
The discount retailer reported that sales at stores open at least one year slipped 5.9 percent in the four weeks ended May 1, below the 2.3 percent drop that analysts had expected as Easter fell on an earlier date and caused holiday related purchases to be made in the previous month.
The combines same store sales for the combined March and April period rose 3 percent, and are up 2.8 percent year-to-date.
"April comparable-store sales were somewhat below our expectation. Based on our combined March and April results, we believe a greater-than-expected portion of sales that otherwise would have occurred in April were pulled forward into March," said Gregg Steinhafel, chairman, president and chief executive officer of Target Corporation.
The company said that higher-margin categories are performing well and that first-quarter net income will come in at least in line the 86 cents per share that is be being anticipated by analysts.
"April sales in our higher margin categories remained particularly strong, and both of our business segments continued to outperform their respective profit plans for the first quarter," Steinhafel said.
Total sales in for Target in April fell 4 percent compared to last year to $4.29 billion from $4.45 billion.
Shares of Target are down 0.55 percent to $55.75 in mid-day trading.
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