Target Updates Second Quarter 2017 Guidance
July 13 2017 - 6:30AM
Business Wire
Company Expects Positive Second Quarter
Comparable Sales and EPS Above the High End of the Prior Guidance
Range
Target Corporation (NYSE:TGT) today updated its guidance for
second quarter 2017 comparable sales and earnings per share (EPS).
As a result of improved traffic and sales trends through the first
two months of the quarter, Target is now expecting to report a
modest increase in its second quarter comparable sales. In
addition, the Company now expects to report second quarter GAAP and
Adjusted EPS1 above the high end of its previous guidance range of
$0.95 to $1.15. Both GAAP and Adjusted EPS are expected to reflect
a 5 to 9 cent benefit driven by the net tax effect of the Company’s
global sourcing operations. In addition, GAAP EPS is expected to
reflect 2 to 3 cents of pressure related to the unfavorable
resolution of tax matters. Target plans to report its second
quarter 2017 financial results on Wednesday, August 16.
“Target’s recent progress reinforces our confidence and
commitment to our strategy as we build an even better Target for
tomorrow. Following better-than-expected results in the first
quarter, we’ve seen additional, broad-based improvement in traffic
and category sales trends in the second quarter, despite continued
challenges in the competitive environment” said Brian Cornell,
chairman and CEO of Target. “Our team is energized and focused on
enhancing and modernizing the Target shopping experience, and our
guests are responding. The launch of Cloud Island in May was a
success, and our team will be rolling out four more exclusive
brands across Home and Apparel in the next few months, in support
of our plan to launch 12 new brands by the end of 2018. We are also
pleased with initial results of the Twin Cities rollout of Target
Restock, providing next-day delivery of a shopping-cart-sized
shipment from an assortment of more than 10,000 essential
items.”
1 Adjusted EPS, a non-GAAP financial measure, excludes the
impact of certain discretely-managed items. As of this release, the
only expected difference between second quarter 2017 GAAP and
Adjusted EPS is 2-3 cents of income tax expense relating to
unfavorable resolution of tax matters, which will be reflected in
GAAP EPS but excluded from Adjusted EPS.
Miscellaneous
Statements in this release regarding second quarter 2017
comparable sales and earnings per share guidance are
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements are
subject to risks and uncertainties which could cause
the Company’s actual results to differ materially. The most
important risks and uncertainties are described in Item 1A of the
Company’s Form 10-K for the fiscal year ended Jan. 28, 2017.
Forward-looking statements speak only as of the date they are made,
and the Company does not undertake any obligation to update any
forward-looking statement.
In addition to the GAAP earnings per share guidance provided in
this release, the Company provides Adjusted EPS guidance for the
three-month period ending July 29, 2017. Adjusted EPS is not in
accordance with, or an alternative for, generally accepted
accounting principles in the United States (GAAP). Management
believes Adjusted EPS is useful in providing period-to-period
comparisons of the results of the Company’s ongoing retail
operations. The most comparable GAAP measure for Adjusted EPS is
diluted EPS from continuing operations. Adjusted EPS should not be
considered in isolation or as a substitution for analysis of the
Company’s results as reported under GAAP. Other companies may
calculate Adjusted EPS differently than the Company does, limiting
the usefulness of the measure for comparisons with other
companies.
About Target
Minneapolis-based Target Corporation (NYSE:TGT) serves
guests at 1,807 stores and at Target.com. Since
1946, Target has given 5 percent of its profit to
communities, which today equals millions of dollars a week.
For more information, visit Target.com/Pressroom. For a
behind-the-scenes look at Target,
visit Target.com/abullseyeview or follow
@TargetNews on Twitter.
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Target CorporationInvestors:John Hulbert,
612-761-6627orMedia:Erin Conroy, 612-761-5928orTarget Media
Hotline, 612-696-3400
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