An Inside Look at Retail Earnings: A Bullseye for Q4 with a Cautious Outlook, Target (TGT)

Tuesday kicked off another round of big retail earnings with Target Corporation announcing their results before today’s open.

General merchandise retailer, Target (TGT) beat earnings and revenue consensus reporting Q4 EPS of $1.89 vs Factset $1.40 while Q4 revenues came in at $31.4B vs Factset $30.75B. Q1 guidance indicated same-store sales from low single digit decline to low single increase and operating margins of 4-5% Additionally they reported Adjusted Q1 EPS of $1.50 – 1.90 vs Factset $2.15.

Target seemed to fall in line with comparable retail earnings thus far and cited the consumer spend to have shifted more toward essentials like grocery and away from discretionary goods such as apparel and electronics. The company also echoed the cautious economic outlook ahead for 2023 and seems to be taking a thoughtful approach for the remainder of the year. CEO Brian Cornell stated, “Looking ahead, we’re focused on executing our long-term strategy, including continued differentiation through affordability, assortment, ease and convenience. At the same time, we’re planning our business cautiously in the near term to ensure we remain agile and responsive to the current operating environment.”

The Street seems to have digested the vigilant 2023 outlook as it appears to be a theme this season, for most retailers. Meanwhile, overall sentiment looks positive in light of TGT’s quarterly profit and sales report as the stock opened green and has been trading up on the day.

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An Inside Look at Retail Earnings: A Bullseye for Q4 with a Cautious Outlook, Target (TGT)

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