Target Corporation (NYSE:TGT) stock fell Wednesday despite the retailer reporting first-quarter results that topped Wall Street estimates and raising its full-year sales outlook, as investors focused on management’s warning of tougher year-over-year comparisons in the quarters ahead.
Quarterly Earnings Beat Expectations
The retailer reported first-quarter adjusted earnings of $1.71 per share, beating analyst estimates of $1.46. Sales rose 6.7% year over year to $25.44 billion, ahead of the Street consensus of $24.64 billion.
Comparable sales increased 5.6% in the quarter, supported by broad-based growth across merchandise categories and sales channels. Comparable traffic rose 4.4% from the prior-year period.
Target said net sales increased across all six core merchandising categories. Digital comparable sales climbed 8.9%, driven by more than 27% growth in same-day delivery through Target Circle 360.
Non-merchandise revenue increased nearly 25%, aided by higher Roundel advertising revenue, Target Circle 360 membership revenue and growth in the Target+ marketplace.
CEO Commentary And Margin Expansion
“As we look ahead, we’re focused on staying disciplined and …