Target has updated the guidance for its second quarter comparable sales and earnings per share to reflect traffic and sales trends and other developments through the first two months of the current fiscal quarter.
The company stated that it now expects to report a modest increase in its second quarter comparable sales. The company asserted that it also expects to report second quarter GAAP and adjusted earnings per share to come in above the high end of its previous guidance range of 95 cents to $1.15. Target added that GAAP and adjusted earnings would reflect a five to nine cent benefit driven by the net tax effect of the company’s global sourcing operations.
In contrast, Target noted that it expects GAAP earnings to reflect two to three cents of pressure related to the unfavorable resolution of tax matters.
“Target’s recent progress reinforces our confidence and commitment to our strategy as we build an even better Target for tomorrow,” said Brian Cornell, Target chairman and CEO. “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. Our team is energized and focused on enhancing and modernizing the Target shopping experience, and our guests are responding. The launch of Cloud Island in May was a success, and our team will be rolling out four more exclusive brands across home and apparel in the next few months, in support of our plan to launch 12 new brands by the end of 2018. We are also pleased with initial results of the Twin Cities rollout of Target Restock, providing next-day delivery of a shopping-cart-sized shipment from an assortment of more than 10,000 essential items.”
Target plans to report its second quarter 2017 financial results on August 16.