Target Doubles Sales Growth Goal as Turnaround Takes Hold
Target raised its annual sales growth forecast to 4 percent after first quarter same-store sales grew 5.6 percent to end a year-long decline. CEO Michael Fiddelke credited the recovery to price cuts on thousands of items and a 2 billion dollar investment in inventory and store remodels.
TARGET CORP doubled its annual sales growth forecast to 4% after a $2 billion turnaround effort fueled a first-quarter recovery. The retailer reported same-store sales grew 5.6% for the three months through May 2, 2023, significantly higher than the 2.5% rise anticipated by LSEG data, ending four consecutive quarters of declining revenue. Investors are weighing the improved guidance against a cautious macroeconomic outlook and rising fuel costs linked to geopolitical tensions.
### Turnaround Strategy Drives Traffic CEO Michael Fiddelke, who took the helm in February, implemented a plan to draw shoppers back by cutting prices on 3,000 items. This performance follows three years of struggles where cost-conscious consumers shifted to cheaper competitors.
