• Q1 net profit climbs 51.6%
  • Sales up 2.8%, and 2.3% on comparable basis
Target saw sales grow 2.8%

Target saw sales grow 2.8%

US retail giant Target Corp has upped its full-year earnings guidance after revealing better than expected comparable sales and earnings in its first-quarter.

In the three months ended 2 May, net profit climbed 51.6% to US$635m from $418m a year earlier.

Group sales grew 2.8% to $17.1m, while first quarter comparable sales increased 2.3%, driven by growth in both transactions and basket size. Both earnings and sales beat company expectations.

"We’re pleased with our first quarter traffic and sales, particularly in our signature categories, which drove better-than-expected profitability through improved gross margin and continued expense management," said CEO Brian Cornell.

The company said it now expects full-year 2015 adjusted EPS of $4.50 to $4.65, compared with prior guidance of $4.45 to $4.65.

Neil Saunders, CEO of Conlumino, noted: "Given the highly competitive state of the market, which places pressure on middle-market and big box retailers like Target, these results are a testament to the company's efforts to reposition itself as a retailer that provides great value for money rather than one that simply focuses on low prices."