Target updates Q2 guidance

Increases comps, EPS expectations based on better traffic, sales

Minneapolis – Encouraged by recent improvements in sales and traffic trends, Target is expecting a better-than-planned second quarter.

The discount chain today updated its guidance, which now calls for a modest increase in comparable sales as well as GAAP and adjusted earnings per share 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-cent 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 will report its Q2 results on August 16.

“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,” explained Brian Cornell, chairman and CEO. “Our team is energized and focused on enhancing and modernizing the Target shopping experience, and our guests are responding.”

He also cited the launch of Cloud Island in May as “a success,” and the retailer is anticipating the roll-out of four more exclusive brands across Home and Apparel in the next few months. In total, Target plans to launch 12 new brands by the end of 2018.

Other business boosters recently include strong initial results of the Twin Cities rollout of Target Restock.

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

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