Minneapolis-based retailer Target today reported first quarter earnings for 2016. The company reported an adjusted EPS of $1.29, up 16.5 percent from first quarter 2015, and above the company’s guidance of $1.15 to $1.25. While first quarter 2016 sales decreased 5.4 percent to $16.2 billion from $17.1 billion last year, comparable sales increased 1.2 percent. In addition, comparable digital channel sales grew 23 percent.
“We are pleased with our first quarter financial results, which demonstrate the effectiveness of our strategy in an increasingly volatile consumer environment,” said Brian Cornell, chairman and CEO of Target. “With an outstanding team, a resilient business model and a strong balance sheet, we plan to successfully implement our long-term strategy, even in the face of a challenging short-term consumer landscape.”
However, the retailer expects sales to slump in the second quarter of 2016, due to a “volatile consumer environment” with comparable sales of flat to down two percent, and an adjusted EPS of $1.00 to $1.20. As a result, the retailer’s stock is down over nine percent in early Wednesday trading.