Target’s Q1 financial results are out, and the numbers are a little light.
Q1 adjusted earnings fell 13.9% year-over-year to $US0.70 per share versus expectations for $US0.71 per share.
Management also reduced its full-year adjusted earnings guidance to $US3.60-$3.90 per share from $US3.85-$4.15 per share.
The good news is that sales appear to be stabilizing. Comparable store sales declined by just 0.3% during the period. Analysts were forecasting a 1.1% drop.
Target has been struggling to restore the trust of consumers after around 40 million credit card numbers were stolen by hackers.
“While we are pleased with this momentum, we need to move more quickly,” said CEO John Mulligan. “As a result, we have made changes to our management team and are investing additional resources to drive U.S. traffic and sales, improve our Canadian operations and advance our ongoing digital transformation. We have updated our 2014 earnings expectations to reflect the impact of these investments and believe that they position Target for accelerated profitable growth as a leading omnichannel retailer.”
The stock is modestly higher in pre-market trading.
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