(AOF) – Target wins 4.97% to 131.27 dollars on the New York Stock Exchange. Despite lowering its full-year outlook, the Minneapolis, Minn.-based retailer reported second-quarter earnings above expectations on Wednesday. Group adjusted earnings were $1.80 per share versus expectations of $1.39. The retailer generated a net profit of 835 million dollars over this period, compared to 183 million dollars a year earlier.
Sales, on the other hand, fell 5% to 24.8 billion dollars against a consensus of 25.2 billion dollars.
Second-quarter operating income margin rate was 4.8% in 2023, compared to 1.2% in 2022.
“We’re seeing food, beverage and household essentials absorbing a larger share of US consumers’ wallets,” said Brian Cornell, CEO of Target.
The company, which mainly sells items such as electronics and home decor, has tried to balance its merchandise by adding more everyday-use products as consumers limit their spending to essential items in an environment of rising prices.
The company paid $499 million in dividends in the second quarter, up from $417 million a year ago, mostly due to a 20% increase in the dividend per share.
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.
For the third quarter, the company expects comparable revenue in a wide range around 4-6%, as well as adjusted earnings per share between $1.20 and $1.60.
In contrast, its great rival Walmart, which is due to publish its results on Thursday, should revise its annual profit forecast upwards.
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