On May 22^nd Target Corporation (TGT) the Nation’s 6^th-ranked retailer, posted results for Q1 FY2024 ending May 4^th, missing estimates for the bottom line.For the quarter, the Company earned $942 million on revenue of $24,143 (estimate $24,130) million with a diluted EPS of $2.03 (estimate $2.05). For the corresponding Q1 FY2023 ending April 29^th, Target earned $950 million on sales of $24,948 million with a diluted EPS of $2.05. Revenue was lower by 3.2 percent and net earnings were 0.8 percent lower than Q1 FY 2023. Gross margin increased from 26.3 percent in Q1 FY2023 to 27.7 percent for the most recent quarter. Operating margin rose from 3.3 percent to 5.4 percent.

For Q1 FY2024, comparable same-store sales declined by 3.7 percent compared to a positive 4.0 in Q1 FY2023. Sales were down by 3.2 percent due to a reduction of 1.9 percent in both transactions (‘traffic’) and the average value of each transaction (‘ticket’). Digital sales were up 1.4 percent during Q1 FY 2024.

The Company re-launched Target Circle a free loyalty benefits program supplanting the previous paid membership alternative.

 In commenting on results Brian Cornell Chairman and CEO stated, "Our first quarter financial performance was in line with our expectations on both the top and bottom line, tracking the trajectory we outlined for this year and setting up a return to growth in the second quarter," said Brian Cornell, chair and chief executive of Target Corporation. "Our topline performance improved for the third consecutive quarter, with growth in our digital business led by strength in our same-day fulfillment services. Consumers continue to respond to the newness and value that we offer across our shopping experience, and we're pleased with early results from the relaunch of Target Circle. Looking ahead, our team will deliver for our guests through lower prices, a seasonally relevant assortment, ease and convenience, as we keep investing in our strategy and efficiency initiatives to get back to growth and deliver on our longer-term financial goals."

The Company maintained guidance for fiscal 2024. Target expects a flat to two percent increase in same-store sales growth and an adjusted EPS ranging from $8.60 to $9.60.

On March 4^th Target posted total assets of $55,117 million, down 0.4 percent from the end of FY2023. Long-term debt and lease obligations attained $18,275 million. Target Corporation had an intraday market capitalization of $72,070 million on May 22^nd. The Company has traded over the past fifty-two weeks in a range of $102.93 to $181.86 with a 50-day moving average of $165.97. TGT trades with a forward P/E of 16.7. On May 21^st pre-release the share closed at $155.76 but after the morning release closed on May 22^nd at $143.27.

Twelve-month trailing operating margin was 5.9 percent and profit margin 3.9 percent. The Company generated a return on assets of 6.8 percent and 33.0 percent on equity.

At the end of FY2023, Target Corporation operated 1,956 stores with a total retail area of 245,939 square feet excluding offices and DCs. The company invested $4,806 million in property and equipment during FY2023.