Sundry Photography Target Corporation ( NYSE: TGT ) fell sharply in early trading on Wednesday after the retailer pointed to sales declines in some discretionary categories. The Minneapolis-based retail giant reported comparable sales decreased 3.7% during the quarter to match the consensus expectation of analysts.
Digital comparable sales were up 1.4% during the quarter. Total revenue of $24.
53 billion was 3.1 percent lower than last year, reflecting a total sales decline of 3.2 percent and a 3.
9 percent increase in other revenue. The revenue tally was in line with the consensus estimate. The beauty category was an outperformer during the quarter.
Target's ( TGT ) operating margin rate was 5.3% vs. 5.
2% a year ago. Gross margin rate was 27.7% of sales, vs.
26.3% a year ago. The gross margin improvement reflected the net impact of merchandising activities, including cost improvements that more than offset higher promotional markdown rates, combined with favorable category mix and lower book to physical inventory adjustments as compared to the prior year.
Target ( TGT ) beat estimates on the EPS line, with a tally of $2.03 recorded, compared to $2.06 consensus and $2.
05 a year ago. Adjusted EBITDA was $2.04B vs.
$1.97B consensus and $2.02B a year ago.
The retailer's inventory level at the end of Q1 was 7% lower than last year, even as it saw higher in-stock levels than a year ago. Target ( TGT ) did not repurchase any stock in the quarter. At the end of the quarter, TGT had ap.