Target Corporation (TGT) Q1 2023 Earnings Call Transcript

For the period ending April 29, 2023

May 17, 2023 8:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Target Corporation First Quarter Earnings Release Conference Call. During the presentation, all participants will be in a listen-only mode. Afterwards, we will invite you to participate in a question-and-answer session. At the close of prepared remarks, we will open the queue for the Q&A session. [Operator Instructions] As a reminder, this conference is being recorded Wednesday, May 17, 2023.

I would now like to turn the conference over to Mr. John Hulbert, Vice President, Investor Relations. Please go ahead, sir.

John Hulbert

Good morning, everyone, and thank you for joining us on our first quarter 2023 earnings conference call. On the line with me today are, Brian Cornell, Chair and Chief Executive Officer; Christina Hennington, Chief Growth Officer; John Mulligan, Chief Operating Officer; and Michael Fiddelke, Chief Financial Officer. In a few minutes, Brian, Christina, John and Michael will provide their perspective on our first quarter performance along with our outlook and priorities for the second quarter and beyond. Following the remarks, we'll open the phone lines for a question-and-answer session.

This morning, we're joined on this conference call by investors and others who are listening to our comments via webcast. Following the call, Michael and I will be available to answer your follow-up questions.

And finally, as a reminder, any forward-looking statements that we make this morning are subject to risks and uncertainties, including those described in this morning’s press release and our most recently filed 10-K. Also in these remarks, we refer to non-GAAP financial measures, including adjusted earnings per share. Reconciliations of all non-GAAP numbers to the most directly comparable GAAP number are included in this morning’s press release, which is posted on our Investor Relations website.

With that, I’ll turn it over to Brian for his thoughts on the first quarter and his priorities for the second quarter and remainder of the year. Brian?

Brian Cornell

Thanks, John, and good morning, everyone. In the first quarter, our team's discipline and dedication to staying [indiscernible] our guests drove results that met or exceeded the expectations we set at our financial community meeting back in February.

Q1 total sales increased 0.5%, reflecting flat comparable sales at the midpoint of our guidance range, combined with the benefit of sales in new locations. Profitability for the quarter was ahead of expectations. We came into the year clear eyed about what consumers are facing with persistent inflation and rising interest rates. And we were determined to build on the trust our guests have had in Target by unifying as a team to deliver affordable joy each and every day as consumers and businesses navigate a third straight year of dynamic challenges.