Target takes earnings hit, but analysts see signs of turnaround

Author:
Updated:
Original:

Target reported a 16 percent drop in first-quarter profit, but an analysis of the numbers in the first quarter earnings report by Reuters sees signs of progress for the troubled Minneapolis-based retailer.

On the positive side of the ledger, sales of $17.05 billion were above estimates, and same-store sales, a key indicator, fell by just 0.3 percent, which was better than analysts had anticipated. Although fewer shoppers visited Target stores, customers who did walk through the doors bought more, and the company said that "traffic was dramatically better than our late fourth-quarter trends."

You can read the first quarter earnings report here.

Store traffic improved throughout February and was "relatively strong" in March despite the harsh weather that other retailers have blamed for weak sales, interim Chief Executive John Mulligan said on a call with reporters. Mulligan, the company's chief financial officer, replaced longtime President and CEO Gregg Steinhafel, who was pushed out earlier this month.

Target has been struggling in the wake of a massive theft of payment card data and a disappointing launch into the Canadian market, where the company lost almost $1 billion last year after opening 124 stores that suffered with inventory and operational problems. Target also ousted the head of its Canadian operation on Tuesday as it tries to regain its footing. The Star Tribune notes the Canadian division just missed the company’s sales target, coming in at $393 million compared to a forecast of $400 to $450 million. The newspaper added that Target indicated it incurred $26 million in expenses related to the data breach in the first quarter, about $8 million of which was expected to be covered by insurance.

The Wall Street Journal suggested that Target's challenges may ultimately hasten change for the company by creating a sense of urgency among executives and board members to shake things up.

Next Up

ambulance, crash

Victims of triple-fatal Maple Grove crash ID'd as woman, 2 toddlers

The single-vehicle crash happened just before 7 a.m. Saturday, May 8.

Ray McNeary

Charges: St. Cloud bank robber wanted to 'go viral,' become 'a martyr'

Police were in a standoff with him at the Wells Fargo bank for more than 8 hours.

MSU-Mankato hockey, Minnesota State, Mavericks

Minnesota State to host St. Thomas at Hockey Day Minnesota 2022

The newly-formed CCHA will have a marquee matchup in its inaugural season

rocky taconite-silver bay

Six of the weirdest roadside attractions in Minnesota

From a two-story outhouse to a squad car's crash with a UFO, here's a list of some of the state's weirdest attractions.

boys volleyball

MSHSL to vote on adding girls wrestling, boys volleyball tournaments

A two-thirds majority vote is needed to pass the proposals.

restaurant-602894_1280

Shakopee restaurant owner charged with 58 tax crimes

The woman, from Savage, is accused of underreporting sales to avoid tax.

gofundme - abdullahi photo

Second suspect, a 17-year-old girl, arrested in Moorhead taxi driver's killing

Abdullahi Abdullahi was found dead in his taxi last week.

Wild

Big playoff implications for the Wild Monday night

Minnesota wraps up the regular season Wednesday-Thursday in St. Louis.

Screen Shot 2021-04-12 at 5.44.29 PM

Brooklyn Center mayor proposes policing reform, including unarmed traffic enforcement

The resolution includes sweeping changes to policing in the wake of Daunte Wright's death.

Computer screens

This UW-Superior degree sets you up for a career in big data

UW-Superior offers online master’s program for transforming big data into better insights.

Related