(Reuters) – Target on Wednesday reported better-than-expected second-quarter earnings that benefited the retail chain at the open on Wall Street, despite a lowering of its full-year outlook.
In the second quarter, the group’s adjusted profit was 1.80 dollars per share (1.65 euros), against expectations of 1.39 dollars.
On Wall Street, Target took 5.75% to 132.24 dollars at 1:47 p.m. GMT, also benefiting from a decline in its inventories.
The company, which mainly sells non-essential items such as electronics and decorative items, has tried to balance its merchandise by adding more daily-use products as consumers limit their spending to essentials. in a context of rising prices.
Its quarterly revenue fell 4.9% to $24.77 billion, its first drop in about six years. The market was expecting quarterly revenue of $25.16 billion.
Target has lowered its adjusted earnings per share forecast for 2023, targeting a range of $7 to $8, from $7.75 to $8.75 previously.
In contrast, its big rival Walmart, which is due to publish its results on Thursday, is expected to revise its annual profit forecast upwards, due to an increase in the consumption of basic necessities, which represent more than half of its turnover.
“We’re seeing food, beverage and household essentials absorbing a larger share of US consumers’ wallets,” said Brian Cornell, CEO of Target.
(Report Ananya Mariam Rajesh and Savyata Mishra in Bangalore; French version Mariana Abreu, editing by Kate Entringer)
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