So is Target Corp. doing better or not?
Executives sounded upbeat about a strong start to the back-to-school shopping season Wednesday as they discussed the retailer's latest quarterly results. And yet, they also lowered their profit outlook for the rest of the year.
The seemingly conflicting statements showed that, even as Target tries to create a turning point with the arrival of new chief executive Brian Cornell, its performance is still being shaped by fierce competition and economic issues outside its control.
Consumers are still conservative with their spending and retailers continue to respond by dangling discounts.
"The retail landscape is very promotional," John Mulligan, Target's chief financial officer and its interim leader in the May-through-July quarter, said after the results were announced.
He added that Target has been pulling back on some of its big discounts from earlier the year, which were initially aimed at winning customers back after the data breach last holiday season caused some people to avoid from its stores.
But the company still ended up being more promotional than it had planned in the second quarter, bowing to competitive pressures. Last week, rival Wal-Mart Stores Inc. lowered its outlook, citing the same issues. Target now expects adjusted earnings per share of $3.10 to $3.30, down from its prior guidance of $3.60 to $3.90. In 2013, its full-year adjusted profit amounted to $4.38 per share.
Some analysts also suggested Target was trying to adjust expectations for investors as Cornell settles in to the job.