Target’s Booming Digital Business Is Motivating it to Open More Stores
Shares for Target Corp. are jumping in pre-market trading this morning after the company posted first-quarter profits that blew past forecasts as it reaps the rewards of an accelerated omnichannel strategy and popular private label offerings.
As of 7:20 a.m. ET, Target futures were in the green nearly 8% to $77.48. The Minneapolis-based retailer announced today that its Q1 adjusted profits climbed 16% to $1.53 per share, significantly besting the $1.43 per share analysts anticipated.
Related stories
3 Must-Know Trends to Watch in This Week's Retail Earnings Reports
Priyanka Chopra Rocks the PVC Shoe Trend With This $30 Skirt You Need for Summer
You Won't Believe This '80s Target Ad With Nicole Kidman
Revenues, meanwhile, advanced 5% to $17.6 billion, slightly above the $17.5 billion market watchers’ forecasted. Target’s accelerated omnichannel strategy — which has seen the retailer expand options such as buy online pickup in store to leverage stores and drive cohesion— also appears to be bolstering traffic as its comparable sales rose 4.8% during the quarter. Its e-commerce business is also logging blockbuster gains with comparable digital channel sales up 42% — on top of the prior year’s 28%.
“Target had an outstanding first quarter, as our team delivered a great experience for our guests and drove strong growth in traffic, comparable sales, operating income and earnings per share,” said chairman and CEO Brian Cornell. “Over the last two years we have made important investments to build a durable operating and financial model that drives consumer relevance and sustainable growth.
Target’s first quarter performance and market-share gains demonstrate that the model is working.” Looking ahead, Cornell said the firm is working to extend the reach of its same-day fulfillment options, develop its portfolio of private label brands and remodel and open more stores.
For the fiscal year, Target continues to expect a low- to mid-single digit increase in comparable sales and adjusted EPS in the range of $5.75 to $6.05.
Watch FN’s video with Keds CEO Gillian Meek below.
Want more?
Kohl’s Stock Tanks on Earnings Miss
Why an Expanded Amazon Partnership Is a Big Deal for Kohl’s
What the Kohl’s Planet Fitness Deal Says About the Future of Gyms in Malls
Sign up for FN's Newsletter. For the latest news, follow us on Facebook, Twitter, and Instagram.