Target Warns Economic Slowdown Will Continue
Target (TGT:US) reported better-than-expected results for the quarter ending on January 28. However, the stock failed to hold onto gains, as Target warned that the company continues to operate in “a very challenging environment.”
Target reported earnings per share of $1.89 on revenue of $31.4 billion, beating the consensus for a profit of $1.40 per share on sales of $30.72 billion. Overall, revenue grew about 1% from the year-ago period.
"We're pleased that our business delivered comparable sales growth in the fourth quarter, in what continues to be a very challenging environment," said Brian Cornell, chairman, and chief executive officer of Target Corporation.
Results published by Target, as well as Walmart, are closely watched by Wall Street as they tend to gauge the strength of a U.S. consumer.
“We're planning our business cautiously in the near term to ensure we remain agile and responsive to the current operating environment. We're pleased that we entered the year in a very healthy inventory position, reflecting our conservative approach in discretionary categories and our commitment to reliability in our frequency businesses,” Cornell added.
Target also said it projects full year EPS between $7.75 and $8.75, a solid miss relative to the consensus of $9.23. Comparable sales are expected to range from a low single-digit decline to a low single-digit increase for FY23.
Target is a popular stock among Congress members. Representatives Ro Khanna, Carol Miller, Lois Frankel, and Josh Gottheimer have all been buying shares in recent months. Mrs. Miller reported a $15,000 - $50,000 purchase of Target shares in August last year at prices similar to today.
