On Wednesday, Target reported higher sales in its solid fiscal second quarter, marking a recovery after a prolonged slump in sales and weak profits.
Its stock price rose by 11.20% to $159.25 apiece on August 21. However, it is expected to drop by -0.16% to $159.00 per share in its after-hours session.
The corporation’s earnings per share (EPS) increased to $2.57, beating the analysts’ $2.19 forecast and the previous $2.03 data.
Moreover, its revenue jumped to $25.45 billion, surpassing the outlook of $25.20 billion and $24.53 billion in the past quarter. Target gained profits higher than Wall Street’s estimates as more shoppers visited its stores and websites to buy more discretionary items.
Meanwhile, the discounter retained its previous full-year sales guidance and struck a cautious note. It mentioned that it anticipates comparable sales for the year to range from a flat level to 2.00%.
Target’s profit estimates rose as it expected its adjusted EPS to range from $9.00 to $9.70, higher from the previous $8.60 to $9.60 range.
According to CEO Michael Fiddelke, the company took a measured approach with its forecast since it is challenging to predict consumer mindsets. They also considered the state of the economy in the following months. He added that their view on consumers mostly remains the same.
GenAI Chatbot to Improve Target In-Store Experience
The retailer giant said on Wednesday that streamlining checkout and deploying generative artificial intelligence-powered (gen-AI) devices made improvements at Target.
CEO Fiddelke said that the success in the in-store checkout experience in Q2, ensuring adequate staffing in full-service lanes, led to positive outcomes.
Moreover, Target completed the launch of its gen-AI-powered handheld devices for its workers, helping them answer common questions and share best practices.
Fiddelke added that they would continue refining the tool over time based on their team’s feedback. Staff are already reporting that it enhances their everyday work experience.
