THE WHAT? Target has announced its results for the second quarter of fiscal 2023. The US retailer delivered softer-than-expected sales but profitability beat expectations, with adjusted earnings per share of US$1.80, up 357.6 percent versus the same period in 2022.

THE DETAILS Comparable sales dropped 5.4 percent and total revenue was down 4.9 percent to US$24.8 billion.

The company has lowered its full year sales and profit expectations accordingly, with comparable sales now forecast in a wide range around a mid-single digit decline for the remainder of the year.

THE WHY? Brian Cornell, Chair and Chief Executive of Target Corporation, said, “Our second quarter financial results clearly demonstrate the agility of our team and the resilience of our business model, as we saw better-than-expected profitability in the face of softer-than-expected sales. With the benefit of a much-leaner inventory position than a year ago, the team was able to quickly respond to rapidly-changing topline trends throughout the second quarter, while continuing to focus on the guest experience.”