TGT Earnings Today: Will Macro Pressures Weigh on the Retailer’s Q2 Results?

Target (NYSE:TGT) is scheduled to announce its results for the second quarter of Fiscal 2023 on August 16. Analysts expect macro pressures to weigh on the retailer’s top line, given that it has more exposure to discretionary items than many peers. Also, investors have been concerned about the possibility of higher markdowns due to intense competition hurting Target’s margins and the backlash from the LGBTQ+ controversy.

Q2 Earnings Expectations for Target

In the fiscal first quarter, Target’s revenue grew 0.6% year-over-year to $25.3 billion, as the strength in categories like beauty, food and beverage, and household essentials was offset by persistent softness in discretionary merchandise like apparel. Adjusted EPS declined 6% to $2.05, reflecting the impact of higher shrink (or retail theft) and increased expenses.