Target will announce its earnings before Wednesday morning, shortly after Walmart shared its quarterly results. Target mainly sells non-essential items like clothes and home decorations. They recently announced plans to reduce prices on many groceries and everyday products.
Target will share its first-quarter earnings on Wednesday. They recently announced plans to reduce prices on many groceries and everyday items. The company, based in Minneapolis, has predicted modest growth for the year. Analysts surveyed by LSEG have made some predictions for Target’s performance.
Earnings per share: $2.06
Revenue : $24.52 billion
This would mean a decrease in sales from $25.32 billion in the same quarter last year.
Like many other stores, Target is facing challenges with customers who are spending less on clothes, home items, and other optional purchases due to feeling wary about prices. Target, known for its trendy yet affordable products, is particularly affected by this because it sells less food than Walmart, its main competitor. Walmart gets about 60% of its U.S. sales from groceries, while Target gets around 20%.
Although inflation eased a bit in April, prices for goods and services were still 3.4% higher compared to a year ago. This is an important measure of how much things cost for consumers.
Last week, Walmart did better than expected in earnings and revenue, thanks to strong growth in online sales and gaining more customers from higher-income groups. The company’s Chief Financial Officer also mentioned that people are choosing to buy groceries from Walmart to save money on meals because fast food is becoming more expensive.
It’s possible that some of Walmart’s new customers are coming from Target.
Target recently lowered prices on some products, acknowledging that customers are concerned about rising prices and facing competition from other discount stores like Walmart and Aldi. They are focusing their discounts mainly on essential groceries like milk, meat, bread, fruits, and vegetables, as well as household items like paper towels and diapers.