Target Q1 sales rise as company doubles annual forecast

Target Corporation reported its strongest quarterly sales growth in four years on Wednesday, marking an early sign of progress for a multi-billion dollar turnaround plan launched by its new chief executive. The retailer's first-quarter results for the period ended May 2 surpassed analyst expectations, prompting the company to double its annual sales forecast.

Comparable sales, a key retail metric measuring sales from stores and digital channels open at least a year, rose 5.6 percent. This represents the largest increase since early 2022 and breaks a streak of three consecutive quarters of decline. Net sales increased 6.7 percent to $25.44 billion. The company posted earnings of $781 million, or $1.71 per share, compared with $1.04 billion, or $2.27 per share, in the same period last year.

The performance was driven by increased customer purchases across all six of Target's primary merchandise categories. Executives highlighted particular strength in toys, aided by an expanded selection of items priced under $10, and digital sales, which surged 8.9 percent. The company credited its Target Circle 360 membership program, which saw a 27 percent jump in same-day deliveries, for part...