Driven by growth in store traffic and gains in market share, Target reported solid comparable store sales growth for the first quarter ended May 4.
Total revenue was $17.6 billion, an increase of 5% when compared to the first quarter of 2018. Net earnings were $795 million, or $1.53 per share, compared with net earnings of $718 million, or $1.33 per share, in the comparable quarter the previous year.
First quarter comparable sales were up 4.8% on traffic growth of 4.3%. Comparable digital channel sales were up 42% as same day fulfillment services drove more than half of the company’s digital sales growth.
“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,” said Brian Cornell, chairman and CEO of Target. “Throughout this year, we will continue to extend the reach of our same-day fulfillment options, strengthen our portfolio of owned and exclusive brands, remodel and open more stores and invest in our team.”
Target expects second quarter comparable sales growth in the low- to mid-single digit range. For the full year, the retailer continues to expect a low- to mid-single digit increase in comparable sales.