First-quarter earnings targets reflect growth in digital sales

Retailer Target reported digital comparable sales growth of 1.4% in fiscal first quarter 2024, although comparable sales declined 3.7%.

Total revenue was $24.5 billion, down 3.1% from last year. First-quarter operating income of $1.3 billion was 2.4% lower than last year, according to an earnings press release.

Overall, first-quarter results were expected, according to Target’s CEO.

“Our first quarter financial results were in line with our expectations on both revenue and earnings, reflecting the trajectory we have outlined for the year and assuming a return to growth in the second quarter,” Brian Cornell, president and CEO, said in the release. “Our financial performance improved for the third consecutive quarter, and the growth of our digital business was driven by a strong position in our same-day order fulfillment services. Consumers continue to respond to the newness and value we offer in our shopping experiences, and we are pleased with the early results of the Target Circle relaunch Looking ahead, our team will continue to deliver value to our guests through lower prices, seasonally appropriate assortment, ease and convenience , as we continue to invest in our strategy and efficiency initiatives to return to growth and delivery. on our long-term financial goals.”

The news comes on the heels of Target announcing that it will be lowering regular prices on approximately 5,000 frequently purchased items over the course of this summer.