Target Q2 Earnings: What We Are Watching
Target (NYSE: TGT) is scheduled to announce its second quarter results on Wednesday, August 17. The company reported mixed results in the first quarter, with revenue missing market expectations even as its earnings per share easily beat the higher end of its own guidance.
Target’s traffic slowed down in July, as the company continues to lose share in the grocery space and saw weakness in its signature categories. Target is expected to report revenues of around $16 billion and adjusted earnings of $1.12 per share in Q2 2016, per consensus estimates. The company expects its adjusted earnings to range between $1.00 per share and $1.20 per share. We expect the company’s revenue to come in at the lower end of expectations due to a slowdown in consumer demand.
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In order to improve its sales going forward, Target will have to up its promotions and stabilize traffic. In a significant strategic shift, the retailer has resumed selling Amazon’s tablets on its website after a four-year break, and is planning to bring them back to stores in the third quarter to boost its slow-growing electronic business. We should expect Target to shed some light on this in the upcoming earnings call.
See our complete analysis for Target
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