Target’s digital comp sales up 23% for first quarter

Target shares took a beating Wednesday after the retailer reported lower-than-expected quarterly revenue and forecast flat to lower sales in coming months.

Target Corp. said consumers pulled back on spending in the first quarter and warned that sales at existing stores could fall in the second quarter – the first such decline in two years.

While the company said its view of second quarter results has been “tempered by the recent slowdown” in consumer trends, Target said it now believes full-year adjusted EPS within its prior guidance range is achievable. “We have seen some trip erosion with guests coming in for that fill-in trip, ” Mr. Cornell said on a conference call. Shoppers also remained cautious about spending money, he said. “We haven’t seen anything from a structural standpoint that gives us pause”. A decline in same-store sales would be the first for Target in almost two years. At Tuesday’s close, the stock had risen just 1.3 percent since the start of the year. EPS grew 16.5% year-over-year thanks to an increase in traffic count, stable sales in signature categories, and successful cost cutting measures. “ORCRP016487-topic.html” class=”local_link” >Wal-Mart Stores Inc. The stock now has a dividend yield of 3%. Target did not weather the storm very well and was hit by weak retail sales, as feared. Instead, more of them are putting their money toward online shopping or investing in homes, vehicles or technology.

A key challenge ahead for Target will be revamping its grocery department and improving the quality of its fresh foods and supply chain, Mushkin said. Digital sales surged 23 percent as well.

Recently, Target has made headlines over its bathroom policy.

Almost 1.25 million people have signed an online pledge to boycott the stores called out by the American Family Association.

In the first half of the year, Target is expected to roll out its mobile app, which would enable its customers to pay for products using the app on their mobile phones.

Wall Street is expecting the retail giant to post earnings per share of $1.19 on revenue of $16.31 billion, according to a Thomson Reuters consensus estimate. With an outstanding team, a resilient business model and a strong balance sheet, we plan to successfully implement our long-term strategy, even in the face of a challenging short-term consumer landscape. A Executive Officer in the company, Baer Timothy R, on Wednesday March 16, 2016 collected $1,951,300 from the sale of 23,782 shares at $81.47 each. According to a research note published on April 24, 2015, analysts at BofA/Merrill have upped their rating on the company stock from Neutral to Buy.