Retail giants Target and Walmart reported higher sales for the fiscal first quarter this week, but offered a cloudy outlook amid signs of strain in the low-income segment of the consumer market.
Target reported $25.4 billion in sales for the first quarter of fiscal 2026, which ended on May 2, up by 6.7 percent from a year earlier. Comparable sales rose 5.6 percent, led by a 4.4 percent rise in traffic and strong growth across all six core merchandise categories.
Gross margin came in at 29 percent, up by roughly 80 basis points year over year, driven by productivity and supply chain gains, higher-margin revenue, and lower price markdown rates….