Headquartered in Minneapolis, Minnesota, Target Corporation is among the top 10 retailers in the United States of America, with an FY2021 total revenue of nearly $106 billion.

Table of Content

First Quarter Highlights First Quarter YoY Financial Comparison Fiscal 2022 Guidance
 

Target First Quarter Highlights

  • Comparable sales increased by 3.3 percent, following a 22.9 percent increase the previous year
  • A 3.9 percent increase in traffic drove the comparable sales gain
  • Store comparable sales climbed by 3.4 percent, following a gain of 18.0 percent the previous year
  • Comparable digital sales increased by 3.2 percent, following a 50.2 percent increase the previous year
  • Same-day services (Drive Up, Order Pickup, and Shipt) increased by 8% this year, headed by Drive-Up, which rose among the mid-teens after increasing by over 120 percent the previous year
  • Target stores fulfilled over 95 percent of the company's first-quarter sales
  • Beauty, Food & Beverage, and Household Essentials were among the fastest-growing categories in terms of sales
  • Gross margin pressure from initiatives to remove excess inventory, as well as greater freight and transportation expenses, drove the operating margin rate to 5.3 percent, which was considerably below forecasts

Source: Target Corporation Reports First Quarter Earnings

 

First Quarter YoY Financial Comparison

  • Total company sales were $25.2 billion in the first quarter, compared to $24.2 billion for the same period last year
  • The expense ratio went up from approximately 90.2% in the first quarter of 2021 to 94.7% in the same period this year
  • Operating Profit Ratio went down from 9.8% in Q1 2021 to 5.3% for the same period this year
  • Net Earnings Ratio slightly reduced from 8.7% in Q1 2021 to 8.3% for the same period this year

Source: Target Corporation Reports First Quarter Earnings

 

Fiscal 2022 Guidance

  • Target forecasts its operating income margin rate in the second quarter of 2022 to be in a wide range, based on the first quarter's operating margin rate of 5.3 percent
  • The Company expects low- to mid-single-digit sales growth for the entire year of 2022
  • Target now expects its operating income margin rate to be somewhere in the range of 6% for the whole year

Source: Target Corporation Reports First Quarter Earnings