Goal Corp. topped first quarter estimates, but warned shrink would take a $500 million bite out of its annual earnings. 

Still the discounter maintained its full-year guidance and is attempting to keep agile a tricky yr for consumer-oriented corporations. 

Brian Cornell, chair and chief executive officer, said: “We got here into the yr clear-eyed in regards to the challenges consumers are facing, and we were determined to construct on the trust we’ve established with our guests. It’s required agility and the power to flex across our multi-category portfolio as we lean into value and the product categories our guests need most right away. Due to the team’s dedication, we saw a rise in guest traffic in Q1, with total sales increasing and profitability ahead of expectations.”

Net earnings for the primary quarter fell 5.8 percent to $950 million, or $2.05 a diluted share, from $1 billion, or $2.16, a yr earlier. 

Earnings per share easily topped estimates, coming in 28 cents ahead of the $1.77 analysts projected, based on FactSet. 

Revenues for the three months ended April 29 increased 0.6 percent to $25.3 billion and fractionally higher than analyst estimates. Strength in what the corporate calls “frequency businesses,” which incorporates beauty, food & beverage and household essentials offset weakness in discretionary categories. 

While Goal’s worked to determine trust with its customers, clearly not all of them are trustworthy given the corporate’s continued trouble with shrink—an industry-wide problem. 

“We now expect shrink will reduce this yr’s profitability by greater than $500 million compared with last yr,” Cornell said. “While there are lots of potential sources of inventory shrink, theft and arranged retail crime are increasingly essential drivers of the difficulty. We’re making significant investments in strategies to forestall this from happening in our stores and protect our guests and our team. We’re also focused on managing the financial impact on our business so we are able to proceed to maintain our stores open, knowing they create local jobs and offer convenient access to essentials.”

Goal is projecting a low-single digit decline in comparable sales within the second quarter. 

For the total yr, it continues to project “comparable sales in a big selection from a low-single digit decline to a low-single digit increase” and operating income growth of greater than $1 billion with EPS of $7.75 to $8.75.