Citing an improved traffic and retail shopping trend, retailer Target upped its comparable target sales for Q2 2017.
In a press release late Friday announcing the news, Target said it now expects a modest increase in its second quarter comparable sales and that it anticipates reporting Q2 2017 GAAP and Adjusted EPS Target shares above the high end of its previous guidance range of $0.95 to $1.15.
Both GAAP and Adjusted EPS are expected to reflect a $0.05 to $0.09 benefit in Target stocks, driven by the net tax effect of the company’s global sourcing operations. In addition, GAAP EPS is expected to reflect $0.02 to $0.03 of pressure related to the unfavorable resolution of tax matters.
“Target’s recent progress reinforces our confidence and commitment to our strategy as we build an even better Target for tomorrow. Following better-than-expected results in the first quarter, we’ve seen additional, broad-based improvement in traffic and category sales trends in the second quarter, despite continued challenges in the competitive environment,” said Brian Cornell, chairman and CEO of Target in a press release announcing the new forecast. “Our team is energized and focused on enhancing and modernizing the Target shopping experience, and our guests are responding. The launch of Cloud Island in May was a success, and our team will be rolling out four more exclusive brands across home and apparel in the next few months, in support of our plan to launch twelve new brands by the end of 2018. We are also pleased with initial results of the Twin Cities rollout of Target Restock, providing next-day delivery of a shopping-cart-sized shipment from an assortment of more than 10,000 essential items.”
Target increased target earnings for Q2 comes just as retail rival Amazon announced it had record sales during its Prime Day last week.