Target Raises Full-Year Sales Forecast to 4% after 5.6% Q1 Comps Growth
TGT•Target reported a 5.6% comparable sales increase in Q1, marking its first growth in five quarters, and raised its full-year sales forecast to 4%. Shares fell 4% as management issued conservative profit guidance and flagged elevated first-half cost pressures despite a 28% YTD stock rally.
1. First Comparable Sales Growth
Target delivered a 5.6% comparable sales increase in Q1, its first positive result in five quarters, driven by strong performance in apparel, home categories and digital channels.
2. Full-Year Sales Outlook Raised
Management lifted its full-year comparable sales forecast to 4%, up from prior guidance, reflecting confidence in continued momentum across its merchandise mix.
3. Profit Guidance and Cost Pressures
Despite top-line strength, executives cautioned that elevated supply chain and labor costs in the first half will constrain profit margins, prompting conservative earnings projections and triggering a 4% share decline after a 28% YTD gain.
