The losses keep accumulating for brick-and-mortar retail as the results of the first quarter of 2017 come to light. Not all of them have been met with disappointment, however, as retail chain Target surprised many with their start to the new year.
Net income for the retailer rose over 7 percent, reaching $681 million compared to $632 million one year prior. This is also represented in share price reaching $1.23 from $1.05 respectively. Per-share earning, also exceeding both Wall Street and the company’s expectations, was $1.21 per share.
This translated into a similar increase in stock price, seeing a 7.4 percent increase to $58.55.
As is the case with many retailers currently, some reason for excitement came simply from a lower decrease than expected. Shown in net sales for Target, the brand’s 1.1 percent slide didn’t equate to the estimated 1.5 percent prior to the quarter, seeing a $200 million drop to $16 billion.
Same-store sales for Target also proved this to be evident after only declining 1.3 percent. It stands as just under three times lower than Wall Street’s forecasted estimated decline of 3.7 percent.
Chief Executive Officer, Brian Cornell, released a statement Wednesday regarding the company’s impressive Q1.
“Target’s first quarter financial performance was better than our expectations, reflecting strong execution by our team as they delivered for our guests in a very choppy environment,” Cornell said, giving credit to the brand and it’s staff. “After starting the quarter with very soft trends, we saw improvement later in the quarter, particularly in March,”
The company has made many strides in an effort to combat the uphill battle of today’s retail climate. One of which is their dedication to advancing service with technology, planning to invest as much as $2 billion over the next few years.
Consumers, and Target, may not see the true fruition of that strategy in the near future, but their recent Q1 numbers certainly carry reasons to be optimistic.