Target Sees Same-Store Sales Growth After Year of Declines
July 13 2017 - 11:18AM
Dow Jones News
By Imani Moise
Target Corp. said rising store traffic helped turn
comparable-store sales growth positive for the first time in a
year, giving the retailer an early win in its bid to improve stores
and lure shoppers with new brands.
The retailer said Thursday it now expects a modest increase in
comparable sales in its second quarter compared with prior guidance
of a low- to single-digit percent decline.
Target also gave a rosy earnings outlook, citing tax benefits
from its supply-chain operations. The company now expects earnings
per share to come in higher than prior guidance of 95 cents to
$1.15.
Investors welcomed the news from Target and sent shares in the
company 3.5% higher to $52.63 in morning trading. Despite
Thursday's gains, Target shares are still down 27% so far this
year.
The Minneapolis-based company, like retailers industrywide, has
been coping with the effects of decades of overbuilding and falling
foot traffic as e-commerce becomes increasingly popular.
Target said earlier this year it plans to invest $7 billion over
the next three years on store improvements, new brands and
developing its digital and supply-chain capabilities. It also
expects to sacrifice about $1 billion of potential profit to lower
prices and drive lower-margin digital sales.
Target will report its full second-quarter results on Aug.
16.
Write to Imani Moise at imani.moise@wsj.com
(END) Dow Jones Newswires
July 13, 2017 11:03 ET (15:03 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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