Earlier last month (5.17) Minneapolis-based big box retailer held its Q1 2017 Target Corp Earnings Call. The call was led by Brian C. Cornell Target Corporation – Chairman and CEO and his team: Catherine R. Smith Target Corporation – CFO and EVP, John Hulbert Target Corporation – Senior Director of IR, John J. Mulligan Target Corporation – COO and EVP and Mark J. Tritton Target Corporation – Chief Merchandising Officer and EVP.

The call was notable for two things: its optimistic tone and the private brand was mentioned more than 20 times throughout the presentation. With the most mentions going to the 12 new brands they plan to launch over the next two years. Unfortunately, there was no mention of the private brand in grocery or of the thinking from home and fashion influencing the private brand portfolio strategy in consumables.

First quarter results were better than expected: earnings per share came in 20¢ above the high end of Target’s guidance. The retailer recorded $16.02 billion in first quarter revenue, a result that’s down 1.1% year-over-year but meaningfully above the $15.62 billion the market anticipated. Same-store sales declined 1.3%, outpacing Wall Street prognosticators forecast for a 3.7% decline. Net income for the quarter came in at $681 million, up 7.7% year-over-year.

Brian C. Cornell began the meeting:

“At our Financial Community Meeting in February, we outlined our multiyear plan to position Target to deliver consistent growth, market share gains and outstanding financial performance over the long term. This plan includes capital investments of more than $7 billion over the next 3 years, focused on continued investments in technology and our supply chain to build a smart network, a network that leverages all of our store and distribution assets to serve our guests more quickly and flexibly in every channel; investments to reimagine the shopping experience in more than 600 of our existing stores; and the addition of more than 100 new small-format locations around the country.

On top of these capital investments, we discussed our plan to invest $1 billion of operating margin this year to allow us to move faster in support of our strategic priorities. We said our biggest operating investment will be in our team, equipping them to deliver enhanced service, convenience, and deeper product expertise as we prepare for the launch of 12 new and exciting brands over the next 2 years.”

Read more at source: My(Private) brand