Target is set to report second-quarter earnings before the bell on Wednesday.
Here’s what analysts are expecting, according to a survey by Thomson Reuters:
* Earnings per share: $1.40
* Revenue: $17.28 billion
* Same-store sales: an increase of 4 percent
Target has been focused on reinvesting in its business ever since it laid out a strategy at the start of last year to pour $7 billion into expanding its e-commerce platform, bulking up its line-up of in-house brands, opening new small-format stores and remodeling existing locations.
The big-box retailer has also been improving its supply chain operations. It acquired Shipt to help speed same-day deliveries, rivaling companies like Kroger, Walmart and Amazon that are looking to do more of the same. Particularly within grocery, however, Target is believed by analysts to have a weaker fresh food offering than its peers. Its revamped and smaller-format stores are starting to include a broader grocery assortment.
Looking to the full year, Target has said it expects sales at stores open for at least 12 months increase at a low-single-digit rate, and adjusted earnings per share to fall between $5.15 and $5.45.
Target shares are up about 27 percent so far this year, bringing the retailer’s market cap to roughly $44.1 billion. That compares with Walmart, which has a market cap of about $282 billion, while its stock has fallen nearly 3 percent over the same time period.
This is a developing story. Please check back for updates.
