The US supermarket chain Target reported better-than-expected results in the first quarter. The sales at Target stores, which opened at least a year ago, fell by 1.3% against a forecast for decline of 3.6%. According to the company, the sales are declining due to fewer customers who have visited stores and fewer purchased products. However, this is partly offset by the rise in demand for swimwear, electronics such as the Nintendo Switch, and products advertised by celebrities such as Victoria Beckham.
The Target’s net profit rose to 681 million USD (1.23 USD per share) in the quarter ended in late April. An year earlier the profit was 632 million USD (1.05 USD per share).
The revenue declined by 1.1% to 16.02 billion USD. The company’s stocks jumped by more than 7% to 58.40 USD per share.
In February, Target said it would take “aggressive activities”, introduce store changes, and invest in new brands and technologies to tackle competition from Wal-Mart and Amazon.com.
“Although we are confident of our plans, we are faced with a number of opposite winds in the current environment”, said the CEO of Target, Brian Cornell.
The online sales grew to 4.3% of total revenue, with a 3.5% share in the same quarter of last year.