American retailer Target's revenue at $24.5 bn in Q1 FY24

Comparable sales for the first quarter declined by 3.7 per cent, driven by a 4.8 per cent decrease in comparable store sales. However, this was somewhat mitigated by a 1.4 per cent increase in comparable digital sales. The lower sales volume led to a 2.4 per cent decrease in first quarter operating income, which stood at $1.3 billion, the company said in a press release.

Despite the drop in sales, Target's operating income margin rate showed a slight improvement, reaching 5.3 per cent in 2024, up from 5.2 per cent in 2023. Similarly, the company's gross margin rate increased to 27.7 per cent, compared to 26.3 per cent in the previous year.

The company's first quarter GAAP and adjusted earnings per share (EPS) were reported at $2.03, marginally down from $2.05 in 2023. The selling, general, and administrative expenses rose to 21.1 per cent in Q1 FY24 from 19.8 per cent in Q1 FY23.

Inventory levels at the end of Q1 were 7 per cent lower than the previous year, despite the company experiencing higher in-stock levels compared to a year ago.

"Our first quarter financial performance was in line with our expectations on both the top and bottom line, tracking the trajectory we outlined for this year and setting up a return to growth in the second quarter," said Brian Cornell, chair and chief executive of Target Corporation. "Our topline performance improved for the third consecutive quarter. Consumers continue to respond to the newness and value that we offer across our shopping experience, and we're pleased with early results from the relaunch of Target Circle."

Fibre2Fashion News Desk (DP)