Target is set to report second-quarter earnings before the bell on Wednesday.
Here’s what Wall Street is expecting:
- Earnings per share: $1.19 per share, according to a survey of analysts by Thomson Reuters.
- Revenue: $16.296 billion, Thomson Reuters said.
- Same-store sales: an increase of 0.7 percent, according to Thomson Reuters.
In its fiscal first quarter, Target’s results showed sign of progress, but analysts were saying the company still had a way to go to turn things around.
The company recently embarked on its plan to invest more than $7 billion in capital in itself over the next three years, in order to “evolve” to meet consumer preferences.
The big-box retailer hopes that by rolling out 12 original brands over the next two years — building on the success of its Cat & Jack children’s line — this will drive more shoppers back to stores. Digital initiatives to grow online sales are also top of mind.
Until this past Monday, Target had so far been on the sidelines as far as deals go, while retail rival Wal-Mart has made acquisitions big and small, ranging from that of Jet.com to apparel e-retailer Modcloth. But earlier this week Target announced plans to scoop up transportation technology company Grand Junction, with the goal of growing its same-day delivery service.
“The deal should help TGT manage its fleet of transportation assets as it looks to harness the power of its physical and digital assets to improve its store experience and deliver products to customers,” UBS analyst Michael Lasser wrote in a note to clients.
Target has also added two new executives, Mark Kenny and Liz Nordlie, to its food and beverage team. Kenny joins Target from Wal-Mart, and Nordlie from General Mills.
The recent announcements, particularly as they relate to Target’s grocery business, are welcomed by analysts who have been waiting for the big-box retailer to make a move.
As of Tuesday’s market close, shares of Target have fallen 28 percent over the past 12 months. The S&P 500 Retail ETF (XRT) meantime has dipped about 16 percent lower over the same period.
Source: FactSet
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