Consumer
Target Stands By Its Annual Outlook Even as Consumers Pull Back on Spending
- Company sees discretionary softness, strength in essentials
- Theft is driving 2023 headwind set to worsen by $500 million
Plastic bags at a self checkout kiosk at a Target Corp. store in Chicago.
Photographer: Daniel Acker/BloombergTarget Corp. stood by its annual outlook after posting higher-than-expected profit in the first quarter, even as “softening sales trends” threaten to crimp short-term results.
Robust sales in food, beauty products and household essentials are offsetting flagging demand for discretionary goods, Target said Wednesday. But earnings in the current quarter will be no more than $1.70 a share, the retailer predicted. That would trail the $1.91 average of analyst estimates compiled by Bloomberg.