Target released its earnings results for the first quarter on Wednesday, expressing confidence about the coming months following a respectable performance. Net sales for the first quarter amounted to $25.3 billion, beating Wall Street estimates of $25.18 billion and achieving a 0.6% year-on-year growth.
Despite narrowly missing estimates of a 26.52% gross profit margin, Target’s margin of 26.3% still surpassed the company’s 25.7% margin a year ago. Diluted earnings per share stood at $2.05; beating estimates of $1.80.
“We came into 2023 clear-eyed about what consumers are facing with persistent inflation and rising interest rates,” Target chairman and CEO Brian Cornell stated on a call with reporters. “We were determined to build on our guests’ trust by unifying as one team to deliver affordable joy each and every day as consumers and businesses navigate a third straight year of dynamic challenges.”
Although consumers appeared to express caution when it came to certain purchases, Cornell expects Target to fare better in the second half of the year. He expects to see consistent performance among food and beverage, household essentials, and beauty products.