Target's Earnings and Sales Exceed Expectations
August 21 2019 - 7:30AM
Dow Jones News
By Kimberly Chin
Target Corp. said sales and profit rose in the second quarter,
extending the retailer's growth streak as investments in its
stores, merchandise and digital capabilities continue to pay
off.
The company reported Wednesday a 3.4% rise in comparable sales
for the quarter ended Aug. 3. Chief Executive Brian Cornell said
Target's sales and traffic were achieved by attracting customers
with a compelling assortment, convenience and competitive
pricing.
Digital sales jumped 34% from a year earlier.
The company raised its earnings guidance for the year. Target
now anticipates earnings of $5.90 to $6.20 a share, up from its
previous range of $5.75 to $6.05 a share.
Shares of Target jumped 9.4% in premarket trading as sales were
more than Wall Street analysts were expecting.
Discount chains have gained market share in recent quarters,
while department stores have struggled to stand out. Walmart
reported higher sales in the recent quarter, extending a multiyear
streak of growth. Macy's Inc., Kohl's Corp. and J.C. Penney Co.
posted disappointing results. Many retailers are also bracing for
an increase in tariffs on goods imported from China.
Like other retailers, Target has been spending heavily to adjust
to changes in shopping habits and compete with Amazon.com Inc. It
has added new brands, expanded its pickup and delivery options,
renovated stores and improved its digital capabilities. The
retailer has also been benefiting from store closures by Toys "R"
Us and others.
Target's second-quarter profit rose from a year earlier to $938
million, or $1.82 a share. Total sales climbed 3.6% to $18.42
billion.
Target said it expects a 3.4% increase for comparable sales in
the current quarter as well as the second half of the year, and
earnings of $1.04 to $1.24 a share for the quarter.
Write to Kimberly Chin at kimberly.chin@wsj.com
(END) Dow Jones Newswires
August 21, 2019 07:15 ET (11:15 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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