Goal is ready to report second-quarter earnings earlier than the bell

Pedestrians sporting protecting masks stroll previous a Goal retailer in New York, on Monday, Aug. 17, 2020.

Jeenah Moon | Bloomberg | Getty Photos

Target is ready to report its fiscal second-quarter earnings earlier than the bell on Wednesday.

Here is what Wall Avenue is anticipating, based on Refinitiv consensus estimates:

  • Earnings per share: $3.49
  • Income: $25.08 billion

Goal faces difficult comparisons with the year-ago quarter when the retailer’s efficiency through the pandemic blew away Wall Street’s estimates. Throughout that three-month interval, the corporate’s comparable sales, a key metric that measures sales online and at stores open for at least a year, surged by 24.3% — an all-time excessive for the retailer — as the corporate’s digital gross sales almost tripled.

But analysts stay bullish, pointing to customers’ urge for food for spending and company-specific strengths from curbside pickup to non-public labels. Goal might additionally choose up gross sales from the back-to-school season. It might benefit from child tax credits, which started dropping into households’ financial institution accounts in mid-July, too.

Comparable gross sales are anticipated to develop by 8.8% within the second quarter, based on consensus estimates from StreetAccount.

Goal’s big-box competitor, Walmart, raised its forecast for the year on Tuesday and mentioned its back-to-school gross sales obtained off to a promising begin. It mentioned retailer visitors had picked up and e-commerce gross sales had slowed.

However, retail sales numbers fell short of expectations on Tuesday, elevating new questions on whether or not the delta variant is beginning to chill spending or if customers are spending more cash on companies like airline tickets, concert events and restaurant meals and fewer on items.

Simeon Gutman, a retail analyst for Morgan Stanley, mentioned Goal “continues to be the belle of the ball.” He mentioned he expects the retailer to proceed “punching means over their market share” within the second quarter, because it attracts new prospects and sells extra attire, dwelling decor and different items.

Goal’s shares are up 44% up to now this yr — outpacing the 31% year-to-date progress of the S&P 500. The inventory hit an all-time excessive of $267.06 final week, however closed at $254.65 on Monday.

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