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

MINNEAPOLIS - Target on Wednesday reported first quarter 2016 comparable sales growth of 1.2%, and adjusted earnings per share from continuing operations of $1.29, up 16.5% from $1.10 in 2015. 

 

“We are pleased with our first quarter financial results, which demonstrate the effectiveness of our strategy in an increasingly volatile consumer environment,” stated Brian Cornell, chairman and CEO of Target. “First quarter comparable sales in signature categories grew more than three times the company average, digital comparable sales grew 23%, and strong execution by our team delivered stronger-than-expected growth in Adjusted EPS. 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.”

 

First quarter 2016 sales decreased 5.4% to $16.2 billion, as a 1.2% increase in comparable sales was more than offset by the impact of the sale of the pharmacy and clinic businesses. 

 

First quarter GAAP earnings per share from continuing operations were $1.02, compared with $1.01 in first quarter 2015. First quarter 2016 GAAP EPS from continuing operations reflects $261 million of pre-tax early debt retirement losses, costs related to the sale of the pharmacy and clinic businesses to CVS Health and the resolution of income tax matters. 

 

While the Company’s view of second quarter results has been tempered by the recent slowdown in consumer trends, Target currently believes full-year adjusted EPS within its prior guidance range is achievable, Target stated. 

 

In second quarter 2016, Target expects comparable sales of flat to down 2%, and Adjusted EPS of $1.00 to $1.20.