Target Corp. (TGT, Financial) released its second-quarter earnings before the opening bell on Aug. 21. The retailer posted both and earnings and revenue beat for the quarter as it lured more customers with its in-store pickup and same-day shipping services.
Snapshot of the quarter
Target reported earnings of $1.82 per share, which topped estimates of $1.62. Revenue came in at $18.42 billion, surpassing expectations of $18.34 billion. Same-store sales grew 3.4%, which was more than the anticipated increase of 2.9%.
Digital sales climbed 34%, which down form 42% growth in the first quarter.
Operating income amounted to $1.324 billion, up 16.9% from the prior-year quarter.Â
"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," Chairman and CEO Brian Cornell said. "By appealing to shoppers through a compelling assortment, a suite of convenience-driven fulfilment options, competitive prices and an enjoyable shopping experience, we're increasing Target's relevancy and deepening the relationship between our guests and our brand.”
Efforts
In a view to make shopping more convenient, the company is improving its online store and focusing on faster shipping. Target is also investing in modernizing its stores and launching small-format locations in major metropolitan areas like New York. The company also plans to launch curbside pickup for online orders.
The big-box retailer also rolled out a new grocery line called Good & Gather this week, which happens to be its biggest private label venture so far.
Financial forecast
Target expects full-year adjusted earnings per share to range from $5.90 to $6.20, which is up from its previous forecast of $5.75 to $6.05.
Disclosure: I do not hold any positions in the stocks mentioned.
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