MINNEAPOLIS — Target Corp. released its second-quarter earnings report on Wednesday, showing strong growth in all areas.
Brian Cornell
For the quarter, Target saw its comparable sales increase by 3.4%, which it said was driven by a 2.4% growth in traffic. Its comparable sales have continued to be up about 10 percent over the last two years. Total revenue for the company was $18.4 billion, an increase of 3.6% from the $17.8 billion reported in Q2 2018. Target has increased its guidance for the year as it expects to continue its growth cycle.
The retailer also saw its comparable digital channel sales grow; up 34% for the second quarter of 2019 while its same-day fulfillment services accounted for nearly 1.5% of the company’s overall comparable sales growth.
“We are really pleased with our second quarter performance, which demonstrates the strength of our strategy and the durable financial model we’ve built over the last several years,” said Brian Cornell, chairman and chief executive officer of Target Corp. “By appealing to shoppers through a compelling assortment, a suite of convenience-driven fulfillment options, competitive prices and an enjoyable shopping experience, we’re increasing Target’s relevancy and deepening the relationship between our guests and our brand. Traffic and sales continue to grow while our EPS reached an all-time high, driven by the strength of our team’s execution and their focus on delivering for our guests. Because of our outstanding performance in the first half of the year and our confidence moving forward, we are increasing our guidance for full-year earnings per share,” he added.
For both the third quarter and second half of 2019, Target expects comparable sales growth in line with the 3.4% comparable sales growth the company delivered in the second quarter of 2019. For the third quarter, the company expects both GAAP EPS from continuing operations and Adjusted EPS of $1.04 to $1.24.
For full-year 2019, Target now expects GAAP EPS from continuing operations and Adjusted EPS of $5.90 to $6.20 compared with the prior range of $5.75 to $6.05. Third quarter and full-year 2019 GAAP EPS from continuing operations may include the impact of certain discrete items which will be excluded in calculating Adjusted EPS. The company is not currently aware of any such discrete items.
Total revenue of $18.4 billion increased 3.6% from $17.8 billion last year, reflecting sales growth combined with a 6.3% increase in other revenue. Second quarter sales growth of 3.6% reflected comparable sales growth of 3.4 percent combined with the contribution from non-mature stores. Comparable digital sales grew 34%, contributing 1.8 percentage points to comparable sales growth. Operating income was $1,324 million in second quarter 2019, up 16.9% from $1,133 million in 2018.
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