Investing.com -- Target (NYSE:TGT) reported first-quarter earnings on Wednesday that fell short of analyst expectations and lowered its full-year guidance, sending shares down 1.5% in premarket trading.
The retail giant posted adjusted earnings per share of $1.30 for the quarter ended April 29, missing the analyst consensus of $1.65. Revenue came in at $23.85 billion, below estimates of $24.35 billion and down 2.8% YoY.
Comparable sales decreased 3.8% in the first quarter, reflecting a 5.7% decline in comparable store sales partially offset by 4.7% growth in digital sales. The company cited a "highly challenging environment" for the weaker-than-expected performance.
"While our sales fell short of our expectations, we saw several bright spots in the quarter, including healthy digital growth, led by a 36% increase in same-day delivery through Target Circle 360," said Brian Cornell, CEO of Target.
For fiscal 2025, Target now expects a low-single digit decline in sales and adjusted EPS of $7.00 to $9.00. The retailer previously guided for net sales growth in a range around 1% and adjusted EPS between $8.80 and $9.80
To address current challenges, Target announced the establishment of a "multi-year acceleration office" led by Michael Fiddelke, aimed at enabling faster decision-making and execution of strategic initiatives to support a return to growth.