Sylvia Jablonski reacts as Target posts a surprise increase in profit

November 15, 2023 06:10 AM PST | By Invezz

Sylvia Jablonski reacts as Target posts a surprise increase in profit — Image source: Invezz

Target’s guidance for the current quarter

The retail behemoth also issued guidance for the current quarter that was somewhat in line with expectations.

Target now forecasts its per-share earnings to fall between $1.90 to $2.60 on an adjusted basis on a mid-single digit percentage decline in same-store sales. On CNBC’s “Squawk Box”, Sylvia Jablonski – the Chief Executive of Defiance ETFs said today:

I think Target has some good tailwinds coming forth. November and December, we’re going into the holiday season. They’ll probably get another good quarter.

Analysts, in comparison, had called for $2.23 a share and a 5.3% decline in comparable sales. Target stock is still down 30% versus its year-to-date high.

BREAKING NEWS for Target Corp +3.2%:
Target Corp (TGT) stock rises on Jefferies analyst's Buy rating and lowered price target. $TGT #TGT #Target https://t.co/xJVCDNllAR
— MarketReader Insights (@marketreader_AI) November 14, 2023

Target Corp Q3 financial highlights

Earned $971 million versus the year-ago $712 million
Per-share earnings also increased from $1.54 to $2.10
EPS adjusted for one-time items also printed at $2.10
Sales slipped 4.3% year-over-year to $25 billion
Consensus was $1.47 a share on $25.28 billion sales

The earnings report disclosed a 4.9% hit to same-store sales in the recently concluded quarter versus a wider 5.3% decline expected. Jablonski added on Wednesday:

It (soft landing) is a better Target environment. If consumer remains strong, has liquidity, prices of oil are going down, there’s some ease in inflation, then I think discretionary spending goes back up.

What else was noteworthy?

Other notable figures in the earnings press release include cost of sales and value of inventory which were down 7.8% and 13.9%, respectively.

Target Corp did see weakness in discretionary categories while “frequency” items continued to be strong in Q3. According to Sylvia Jablonski:

I think Target has to sort out the theft issue and the convenience issue. But longer term, consumer has wages and looks like they’re still spending them.

Number of transactions slid 4.1% and the transaction amount was smaller by 0.8% on average in the third quarter, as per the retail giant.

Watch here: https://www.youtube.com/embed/J8S6uePomTo?feature=oembed

The post Sylvia Jablonski reacts as Target posts a surprise increase in profit appeared first on Invezz

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