A Target store is seen in Manhattan, New York City on March 5, 2024.
Spencer Platt | Getty Images
Aim will report quarterly earnings on Wednesday as the retailer tries to recover from a prolonged period of weaker sales and profits.
Here's what Wall Street expects from the Minneapolis-based retailer, according to a survey of analysts by LSEG:
- Earnings per share: $2.18
- Revenue: 25.21 billion dollars
Target, known for its wide array of trendy but low-priced products, has been hurt as consumers buy fewer discretionary items such as new clothing or home decor while paying more for everyday expenses like food and housing. The company’s comparable sales have declined for the past four quarters. The industry-wide metric, also called same-store sales, strips out the effect of one-time factors such as store openings and closings.
However, Target executives said in May that the company was on track to return to sales growth in the second quarter. Target said full-year comparable sales would range from flat to up 2%, and adjusted earnings per share would range from $8.60 to $9.60.
Target has taken steps to try to boost sales and attract more customers. In May, it announced it would cut prices on about 5,000 frequently purchased items, including diapers, milk and paper towels. The company relaunched its loyalty program earlier this year and introduced a new paid membership, Target Circle 360, which includes perks like free same-day delivery. Target also held its own sales event in July to compete with Target. AmazonThe first day of 's.
Back-to-school is also an important season for the retailer, as it is a time when families typically shop for new shoes, clothing, backpacks, notebooks and more.
There are other indicators that could bode well for Target. Consumer spending was stronger than expected in July, with advance retail sales up 1% compared with the previous month, according to the U.S. Department of Commerce.
Competitor of large stores Walmart Last week, it beat Wall Street expectations for its own quarter and quashed fears that consumer health had worsened. Chief Financial Officer John David Rainey told CNBC that customers “remain selective and demanding.” [and] “Search for value,” he added, but “we don't see any further deterioration in consumer health.”
Target's sales mix is different from Walmart's, however. Only 23% of Target's revenue comes from groceries, compared with 60% of Walmart's U.S. business, according to the companies' most recent annual reports.
Additionally, Walmart’s quarterly results could threaten Target. On an earnings call last week, Rainey said that most of Walmart’s market share gains are coming from high-income households, customers who may be choosing Walmart’s stores and website over other retailers, such as Target.
Target shares closed Tuesday at $144.33. As of Tuesday's close, the company's stock is up about 1% so far this year. That lags the S&P 500's gains of about 17% over the same period.
