Target posts biggest jump in comparable sales in 4 years as turnaround takes shape

Target, which embarked on a turnaround plan under its new CEO three months ago, reported its largest jump in comparable sales in four years Wednesday.

More customers buying in all six of Target’s main merchandising categories helped deliver the better-than-expected sales, the company said. 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.

The retail chain also raised its annual revenue outlook, saying it expected the momentum to continue the rest of the year.

Shares rose 1.6% before the opening bell Wednesday.

Target CEO Michael Fiddelke, a 20-year company veteran who became the struggling retailer’s chief executive 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 told reporters Tuesday, 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.”

He and other Target executives presented investors in early March with........

© Fortune