Target posts best sales since 2021

One of America’s largest retailers, Target, reported first-quarter earnings that beat Wall Street expectations and revenue that was its largest since November 2021.

Net sales grew over 6% year over year, while same-store sales jumped 5.6%, marking the first positive number in five quarters.

Overall traffic rose 4.4%, driven by an 8.9% spike in digital comparable sales and a near 25% surge in nonmerchandise sales. Target also opened 7 new stores and has over 100 remodels in progress.

It has raised its full-year net sales growth outlook to 4%, up from 2% previously.

While it was a stellar Q1, analysts remain cautious about Target’s outlook amid macroeconomic concerns, including the Iran war, tariffs, and inflation, which are affecting US consumers’ spending power. The retailer’s shares fell 4% on Wednesday.