Target Corporation, an American retail corporation based in Minneapolis, is set to report its first quarter earnings on Wednesday, May 22, 2024. The company will webcast the conference call beginning at 7:00 a.m. central time for investors and media to listen through Target's website at Corporate.Target.com/Investors (Events & Presentations).
Meanwhile, Target has announced price cuts on over 5,000 everyday items in an attempt to attract inflation-weary shoppers. The reductions include popular household staples such as milk, fresh fruit, diapers, and pet food. Specific examples of price drops include Clorox wipes from $5.79 to $4.99 and one pound of unsalted butter from Target's Good & Gather brand dropping from $3.99 to $3.79.
Target's sales have been affected by inflation, which was up 3.4% on a year-over-year basis in April, and the retailer anticipates comparable sales to range from flat to up 2% and adjusted earnings per share to range from $8.60 to $9.60 for the full year.
Other major retailers like Ikea and Aldi have also been reducing prices in recent months as consumers pull back on spending due to inflation. According to Sarah Wyeth, managing director, retail and consumer with S&P Global Ratings, shoppers have been cutting back on discretionary goods such as home decor, electronics, and nonessential clothing.
Target's price cuts are not limited to food items; the company is also focusing on thousands more discounts across various product categories. The retailer will give an update on its sales when it reports earnings Wednesday.
Investors and analysts will be closely watching Target's earnings report for insights into the company's performance amid inflationary pressures and changing consumer behavior.
