Capital Deployment and Return on Invested Capital The Company’s first quarter 2022 net interest expense was $112 million, in line with $108 million last year.įirst quarter 2022 effective income tax rate was 19.2 percent, in line with the prior year rate of 19.6 percent. First quarter SG&A expense rate was 18.9 percent in 2022, compared with 18.6 percent in 2021, reflecting the net impact of cost increases across our business, including investments in hourly team member wages, partially offset by lower incentive compensation expense. This year's gross margin rate reflected higher markdown rates, driven largely by inventory impairments and actions taken to address lower-than-expected sales in discretionary categories, as well as costs related to freight, supply chain disruptions, and increased compensation and headcount in our distribution centers. First quarter gross margin rate was 25.7 percent, compared with 30.0 percent in 2021. Operating income was $1.3 billion in first quarter 2022, down 43.3 percent from $2.4 billion in 2021, driven primarily by a decline in the Company's gross margin rate.įirst quarter operating income margin rate was 5.3 percent in 2022, compared with 9.8 percent in 2021. Total revenue of $25.2 billion grew 4.0 percent compared with last year, reflecting total sales growth of 4.0 percent and a 6.7 percent increase in other revenue. Operating ResultsĬomparable sales grew 3.3 percent in the first quarter, reflecting comparable store sales growth of 3.4 percent and comparable digital sales growth of 3.2 percent. The Company now expects its full-year operating income margin rate will be in a range centered around 6 percent. Despite these near-term challenges, our team remains passionately dedicated to our guests and serving their needs, giving us continued confidence in our long-term financial algorithm, which anticipates mid-single digit revenue growth, and an operating margin rate of 8 percent or higher over time.” Fiscal 2022 Guidanceįor second quarter 2022, the Company expects its operating income margin rate will be in a wide range centered around first quarter's operating margin rate of 5.3 percent.įor full-year 2022, the Company continues to expect low- to mid- single digit revenue growth. Throughout the quarter, we faced unexpectedly high costs, driven by a number of factors, resulting in profitability that came in well below our expectations, and well below where we expect to operate over time. “Our first-quarter results mark Target’s 20th-consecutive quarter of sales growth, with comp sales growing more than 3 percent on top of a 23 percent increase one year ago," said Brian Cornell, chairman and chief executive officer of Target Corporation. "Guests continue to depend on Target for our broad and affordable product assortment, as reflected in Q1 guest traffic growth of nearly 4 percent. All earnings per share figures refer to diluted EPS. The attached tables provide a reconciliation of non-GAAP to GAAP measures. First quarter Adjusted EPS 1 of $2.19 decreased 40.7 percent compared with $3.69 in 2021. The Company reported first quarter GAAP earnings per share (EPS) of $2.16, down 48.2 percent from $4.17 in 2021. Target Corporation (NYSE: TGT) today announced its first quarter 2022 financial results, which reflected continued topline growth on top of unprecedented increases over the last two years. Operating margin rate of 5.3 percent was well below expectations, driven primarily by gross margin pressure reflecting actions to reduce excess inventory as well as higher freight and transportation costs.įor additional media materials, please visit: / 05 /q 1 -202 2 -earnings.Sales growth was led by frequently-purchased categories, including Food & Beverage, Beauty, and Household Essentials.More than 95 percent of Target’s first quarter sales were fulfilled by its stores.Same-day services (Order Pickup, Drive Up and Shipt) grew 8 percent this year, led by Drive Up, which grew in the mid-teens on top of more than 120 percent last year.Digital comparable sales grew 3.2 percent, following growth of 50.2 percent last year.Store comparable sales increased 3.4 percent, on top of 18.0 percent growth last year.Comparable sales growth reflected traffic growth of 3.9 percent.Comparable sales grew 3.3 percent, on top of 22.9 percent growth last year.
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