Target Q1 revenue $25.4 billion

Target reported first-quarter net sales of $25.4 billion on May 20, up 6.7% from a year earlier, and said adjusted earnings per share were $1.71. The Minneapolis-based retailer also raised its full-year sales growth outlook to around 4%, up from a prior range centered on 2%. The results showed growth across all six core merchandise categories, stores and digital channels. They also came with a more cautious tone from management about the months ahead. ### How strong was the quarter on the numbers? Target said comparable sales rose 5.6% in the first quarter, its best showing after several quarters of pressure, with comparable store sales up 4.7% and comparable digital sales up 8.9%. Customer traffic increased 4.4%, according to the company’s earnings release. The $1.71 earnings figure carried two comparisons at once. Target said first-quarter GAAP and adjusted EPS were both $1.71, down 24% from prior-year GAAP EPS of $2.27 but up 32% from prior-year adjusted EPS of $1.30, because last year’s GAAP result included non-recurring legal settlement gains. ### Where did the sales growth come from? (corporate.target.com) Target said merchandise sales rose 6.4% and non-merchandise sales rose 24.6% in the quarter. The company said digital comparable sales were led by more than 27% growth in same-day delivery powered by Target Circle 360. It also said non-merchandise growth reflected gains in Roundel advertising revenue, Target Circle 360 membership revenue and the Target+ marketplace. (corporate.target.com) Store sales were still the larger driver. Target’s earnings-call materials said store-channel net sales rose nearly 6% and accounted for more than $1 billion of added sales, or about two-thirds of total sales growth, while first-party digital sales climbed nearly 9%. ### Why did investors focus on management’s caution? Michael Fiddelke, Target’s chief executive officer, said in the earnings release that first-quarter results were “stronger than expected” and showed “encouraging early signs” that the company’s strategy was working. (corporate.target.com) In the same statement, he said Target was “focused on staying disciplined and flexible in an uncertain operating environment.” (fool.com) Bloomberg reported that investors were unsettled by the company’s more cautious tone about the coming months even after the sales beat and higher annual revenue guidance. The upstream briefing also cited commentary that Jim Lee, Target’s chief financial officer, urged caution on sales trends during the company’s May 20 communications. (corporate.target.com) ### Did Target change its outlook for the rest of 2026? Target said it now expects 2026 net sales growth in a range around 4%, two percentage points higher than its prior range. The company also said it continues to expect net sales growth in every quarter of the year and now sees GAAP and adjusted EPS near the high end of its previously stated $7.50 to $8.50 range. (bloomberg.com) Capital spending remains elevated. Target said it deployed about $1 billion in capital expenditures in the quarter and still expects about $5 billion for the full year, supporting new stores and remodels. The company said it opened seven new stores in the quarter, including its 2,000th location, and remains on track to open more than 30 stores in 2026. (corporate.target.com) ### What should readers watch next? Target’s investor relations page said on May 22 that no future events were currently scheduled. The company’s next formal checkpoint is expected to be its second-quarter earnings release, when investors will look for updated sales trends, traffic figures and any changes to the full-year outlook from Fiddelke and Lee. (corporate.target.com) (fool.com)