US retailer Target's comparable sales up 3.3% in Q1

“Our first-quarter results mark Target’s 20th-consecutive quarter of sales growth, with comp sales growing more than 3 per cent on top of a 23 per cent increase one year ago," Brian Cornell, chairman and chief executive officer of Target Corporation, said in a statement.

"Guests continue to depend on Target for our broad and affordable product assortment, as reflected in Q1 guest traffic growth of nearly 4 per cent. Throughout the quarter, we faced unexpectedly high costs, driven by a number of factors, resulting in profitability that came in well below our expectations, and well below where we expect to operate over time. Despite these near-term challenges, our team remains passionately dedicated to our guests and serving their needs, giving us continued confidence in our long-term financial algorithm, which anticipates mid-single digit revenue growth, and an operating margin rate of 8 per cent or higher over time," explained Cornell.

For the second quarter of 2022, the company expects its operating income margin rate will be in a wide range centered around the first quarter's operating margin rate of 5.3 per cent. For full-year 2022, the company continues to expect low- to mid-single digit revenue growth. The company now expects its full-year operating income margin rate will be in a range centered around 6 per cent.

Fibre2Fashion News Desk (RR)