Shares of the fourth largest US retailer Target (NYSE:TGT) rose 0.38 percent today, after announcing earnings of US$635 million or 98 cents per share in the first quarter, compared to US$418 million or 66 cents per share last year.
Adjusted earnings amounted to US $ 1.10 per share.
Analysts polled by Zacks had forecast a profit of $ 1.03 per share.
Revenue for the quarter was US$17.12 billion, or slightly higher than analysts’ expectations of US$17.08 billion.
Target said it had especially strong sales of baby and fashion items, which shows that its strategy to reduce but improve its product offerings in this area have started to bear fruit, especially as far as its so called "signature products" are concerned including well-being and health items.
"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 Target’s CEO, Brian Cornell in a statement..
Target recently liquidated its Canadian stores after only two years of operations even as its shares have risen 3 percent since the beginning of the year and 34 percent year on year.
In March, Target also adopted a restructuring plan that eliminated several thousand corporate jobs while improving its grocery unit operations and its overall logistics, though a $1 billion investment in technology.
For the full year, Target now expects earnings per share between US$4.50 and 4.65 against a range of US$4.45 to 4.65 while average analyst forecast is US$4.56 dollars.