Executive Summary

• Target reported adjusted 1Q16 EPS of $1.29 versus the consensus estimate of $1.19.
• Total revenues were $16.20 billion versus expectations of $16.31 billion, down 5.4% year over year. Comps increased by 1.2% versus consensus of 1.7%. Store comps were up 0.6% and the digital channel contributed 0.6% to comps.
• Full-year EPS guidance is unchanged, at $5.20–$5.40. Despite the recent slowdown in consumer trends and the company’s tempered outlook for 2Q16, management believes its prior projections for the full year are still achievable.