Target Corporation (TGT) Announced Q1 2027 Earnings on May 20, 2026, Reporting "net sales of $25.4 billion"

During the first quarter, management reported that "net sales of $25.4 billion were 6.7% higher than last year." The company reported first quarter GAAP and adjusted EPS of $1.71.First quarter gross margin rate was 29%, and the first quarter operating margin rate was 4.5%.First-party digital sales grew nearly 9%, led by growth in same-day delivery of more than 27%. On the Target Plus third-party digital sales platform, the company saw nearly 60% growth in first quarter GMV.Management highlighted investments in its "Food Forward strategy" and a multiyear reinvention in its home categories. In the first quarter, the company opened seven new stores, including its 2,000th location, and has over 100 remodels underway this year. To support its "stores as hub fulfillment model," Target invested in upstream facilities, opening a new receive center in Houston and a new food distribution center in Colorado.Management is also investing hundreds of millions of dollars in payroll and training for store team members.Target reported strong engagement from exclusive first quarter drops and partnerships with Parke, Roller Rabbit, Pokemon, and a K-Pop-BTS launch.The company is also preparing for the fall launch of a "Target beauty studio" in more than 600 stores and is testing a new baby concierge service in 200 stores.For its forward guidance, management stated they are "planning for a net sales increase in a range centered around 4%" for the full year.Target previously provided a full year "EPS range of $750 million to $850 million" and is now "expecting to end the year near the high end of that range." The company also continues to expect about $5 billion of capital expenditures for the full year.