- Prachi Singh
Target Corporation reported comparable sales growth of 6.5 percent and
traffic growth of 6.4 percent in the second quarter. The Company reported
GAAP EPS from continuing operations of 1.49 dollars, up 22.7 percent from
1.21 dollars in second quarter 2017, while adjusted EPS rose 19.8 percent
to 1.47 dollars compared to 1.22 dollars last year.
“For the second consecutive quarter, traffic growth is better than we’ve
seen in well over 10 years, driving 6.5 percent comp growth – Target’s best
in 13 years,” said Brian Cornell, Chairman and CEO of Target Corporation in
a statement, adding, “We’re on track to deliver a strong back half and
we’ve updated our full year guidance to reflect the strength of our
business and the consumer economy.”
Target’s Q2 revenues up 6.9 percent
Total second quarter revenue of 17.8 billion dollars increased 6.9
percent from 16.6 billion dollars last year, reflecting sales growth of 7
percent and growth in other revenue of 0.2 percent. The compant said,
comparable digital channel sales grew 41 percent and contributed 1.5
percentage points of comparable sales growth.
Operating income for the quarter was 1,133 million dollars, up 3.6
percent from 1,093 million dollars in 2017. Second quarter operating income
margin rate was 6.4 percent, compared with 6.6 percent in 2017, while gross
margin rate was 30.3 percent, compared with 30.4 percent in 2017.
Target updates full-year earnings guidance
For both the third quarter and second half of 2018, Target expects
comparable sales growth in line with the 4.8 percent that the company
delivered in the first half of 2018. For the third quarter, the company
expects both GAAP EPS from continuing operations and adjusted EPS of 1
dollar to 1.20 dollars compared with GAAP EPS from continuing operations of
0.87 dollar and adjusted EPS of 0.90 dollars in third quarter 2017.
For full-year 2018, Target now expects GAAP EPS from continuing
operations and adjusted EPS of 5.30 dollars to 5.50 dollars, compared with
the prior range of 5.15 dollars to 5.45 dollars.
Picture:Target media library