NEW YORK (AP) — Target reported the largest jump in comparable sales in four years Wednesday, but a cautious outlook overshadowed convincing evidence that changes under the company’s new CEO are resonating with customers. Customers spent money across all of Target’s main merchandising categories and helped deliver better-than-expected sales. Comparable sales — those coming from stores and digital channels operating for at least 12 months, rose 5.6% in the three-month period ended May 2. It was the biggest gain since early 2022, and the first positive read after three consecutive quarters of negative comparable sales.Target raised its annual revenue outlook, saying it expected momentum to continue the rest of the year. Yet the upgraded sales expectations were still below the pace of the first quarter and investors reacted negatively.
Shares fell 5% Wednesday.CEO Michael Fiddelke, a 20-year company veteran who took over in February, said he remained guardedly optimistic given where the company is in its operational overhaul.“We’re encouraged to see a strong guest response so far,” Fiddelke said, adding: “We’re maintaining a cautious outlook given the work we know we have in front of us and ongoing uncertainty in the macroeconomic environment.”
