Target turned in strong second-quarter results as store traffic gains helped propel comparable sales growth.
Net earnings were $1.19 billion, or $2.57 per diluted share, versus $835 million, or $1.80 per diluted share, in the year-before quarter, the company reported.
An analyst consensus estimate published by Yahoo Finance was for earnings per diluted share of $2.18 per share, while revenue forecast was for $25.2 billion.
Comparable sales gained 2% driven by a 3% increase in traffic, with growth in all core categories. Digital comps advanced 8.7%. Same-day services, including drive up and delivery, experienced double-digit growth, Target maintained.
Net sales were $25.02 billion and total revenue was $25.45 billion versus $24.38 billion and $24.77 billion, respectively, in the year-previous quarter. Operating income was $1.64 billion versus $1.2 billion in the period a year earlier.
In a second-quarter conference call, Brian Cornell, Target chairman and CEO said, guest-focused initiatives helped drive gains. Among categories, apparel was strong, and beauty was a “standout,” he said. Cornell noted the Target Circle loyalty program continues to grow and provide customer insights the company can turn into personalized outreach.
In announcing the first-quarter results, Cornell (pictured above) said, “We made a commitment to get back to growth in the second quarter, and the team delivered, all while expanding operating margins and growing EPS by more than 40% compared to last year. Importantly, our growth was driven entirely by traffic in stores and our digital channels, with double-digit growth in our same-day delivery services. We also saw improving trends across our discretionary categories, most notably in apparel, and we’re seeing continued strength in beauty. Looking ahead, even as we maintain the measured outlook that has served us well, we are focused on building on this positive momentum by executing our strategy and providing the unique combination of newness and value that consumers can only find at Target.”
