As store redesign and other initiatives gained traction, Target enjoyed a productive second quarter, with strong comps and an earnings beat.
Net earnings were $938 million, or $1.82 per share, versus $799 million, or $1.49 per diluted share, in the quarter in the year prior. Earnings per diluted share adjusted for one-time charges remained the same in the latest quarter, at $1.82, but were $1.47 in the period a year before.
Target topped a MarketBeat-published analyst consensus adjusted diluted earnings per share estimate of $1.62.
Comparable sales advanced 3.4% year over year, driven by a 2.4% growth in traffic. Second quarter comparable digital channel sales grew 34%, the company pointed out, adding that same-day fulfillment services, including order pick up, Drive Up and Shipt delivery, accounted for almost 1.5 percentage points of Target’s overall comp gain versus the year-earlier period.
Second quarter sales were $18.18 billion while revenues came in at $18.42 billion, versus $17.55 billion and $17.78 billion, respectively, in the year-previous period. Operating income was $1.32 billion, up 16.9% from the year-past quarter.
Brian Cornell, Target chairman and CEO, said, “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. 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.”