AGL 40.00 No Change ▼ 0.00 (0%)
AIRLINK 131.50 Increased By ▲ 1.97 (1.52%)
BOP 6.86 Increased By ▲ 0.18 (2.69%)
CNERGY 4.53 Decreased By ▼ -0.10 (-2.16%)
DCL 8.82 Decreased By ▼ -0.12 (-1.34%)
DFML 41.89 Increased By ▲ 0.20 (0.48%)
DGKC 83.50 Decreased By ▼ -0.27 (-0.32%)
FCCL 32.90 Increased By ▲ 0.13 (0.4%)
FFBL 77.00 Increased By ▲ 1.53 (2.03%)
FFL 11.93 Increased By ▲ 0.46 (4.01%)
HUBC 109.95 Decreased By ▼ -0.60 (-0.54%)
HUMNL 14.28 Decreased By ▼ -0.28 (-1.92%)
KEL 5.46 Increased By ▲ 0.07 (1.3%)
KOSM 8.22 Decreased By ▼ -0.18 (-2.14%)
MLCF 39.03 Decreased By ▼ -0.76 (-1.91%)
NBP 64.71 Increased By ▲ 4.42 (7.33%)
OGDC 198.00 Decreased By ▼ -1.66 (-0.83%)
PAEL 25.92 Decreased By ▼ -0.73 (-2.74%)
PIBTL 7.63 Decreased By ▼ -0.03 (-0.39%)
PPL 157.20 Decreased By ▼ -0.72 (-0.46%)
PRL 26.09 Decreased By ▼ -0.64 (-2.39%)
PTC 18.00 Decreased By ▼ -0.46 (-2.49%)
SEARL 81.71 Decreased By ▼ -0.73 (-0.89%)
TELE 8.07 Decreased By ▼ -0.24 (-2.89%)
TOMCL 34.39 Decreased By ▼ -0.12 (-0.35%)
TPLP 8.79 Decreased By ▼ -0.27 (-2.98%)
TREET 16.80 Decreased By ▼ -0.67 (-3.84%)
TRG 59.30 Decreased By ▼ -2.02 (-3.29%)
UNITY 27.75 Increased By ▲ 0.32 (1.17%)
WTL 1.45 Increased By ▲ 0.07 (5.07%)
BR100 10,618 Increased By 211.3 (2.03%)
BR30 31,663 Decreased By -50.1 (-0.16%)
KSE100 99,087 Increased By 1758.9 (1.81%)
KSE30 30,867 Increased By 674.5 (2.23%)

Target Corp's first-quarter profit came in below analyst estimates as price cuts, higher wages and investments in its online business ate into margins. Comparable store sales rose more than analysts expected, boosted by the strongest growth in customer visits in a decade. But operating income continues to reflect near-term challenges, Chief Executive Brian Cornell said on an earnings conference call.
The retailer remained confident it could hit its earlier full-year earnings outlook, however, with payoff from investments aimed at warding off competition from Amazon.com Inc and brick-and-mortar rivals expected to pick up later this year.
"The key message from Target's first-quarter results was the company's ability to drive transaction growth, but not without investment spending and margin pressures," Morningstar analysts wrote in a research note. Target's operating income margin weakened to 6.2 percent in the first quarter from 7.1 percent a year ago.
The retailer said margins should improve as seasonal merchandise sales rebound after a delayed spring, pricing investments made last year deliver results, customers react positively to new private-label brands and it focuses on cost-cutting.
Morningstar expects online sales, higher costs associated with delivery and price competition will continue to weigh, however, and did not anticipate a sizeable change to its 5.9 percent average operating margin projection over the next decade. The retailer has poured billions of dollars into aggressively promoting its products, remodeling stores and keeping grocery prices low to compete with Walmart and supermarket chain Kroger Co.

Copyright Reuters, 2018

Comments

Comments are closed.