Target Corporation Reports Second Quarter Earnings

• Second quarter comparable sales grew 24.3 percent, the strongest the Company has ever reported.
• Store comparable sales increased 10.9 percent. Digital comparable sales grew 195 percent, accounting for 13.4 percentage points of Target’s comparable sales growth.
° Stores fulfilled more than 90 percent of Target’s second quarter sales.
° Same-day services (Order Pick Up, Drive Up and Shipt) grew 273 percent and accounted for approximately 6 percentage points of total Company comparable sales growth.
• The Company saw unusually strong market-share gains across all five of its core merchandise categories. In the first half of the year, the Company has gained approximately $5 billion in market share.
• Second quarter GAAP EPS from continuing operations of $3.35 was 84.4 percent higher than last year, and Adjusted EPS1 of $3.38 was 85.7 percent higher than last year, as strong operating performance offset unprecedented investments in team member pay & benefits.

Target Corporation (NYSE: TGT) today announced its second quarter 2020 results, which reflect the continuation of heightened sales volume and significant investments in response to the COVID-19 pandemic. The Company reported GAAP earnings per share (EPS) from continuing operations of $3.35 in the second quarter, an increase of 84.4 percent from $1.82 in 2019. Second quarter Adjusted EPS of $3.38 grew 85.7 percent compared with $1.82 in 2019. The attached tables provide a reconciliation of non-GAAP to GAAP measures. All earnings per share figures refer to diluted EPS.

“Our second quarter comparable sales growth of 24.3 percent is the strongest we have ever reported, which is a true testament to the resilience of our team and the durability of our business model. Our stores were the key to this unprecedented growth, with in-store comp sales growing 10.9 percent and stores enabling more than three-quarters of Target’s digital sales, which rose nearly 200 percent. We also generated outstanding profitability in the quarter, even as we made significant investments in pay and benefits for our team,” said Brian Cornell, chairman and chief executive officer of Target Corporation. “We remain steadfast in our focus on investing in a safe and convenient shopping experience for our guests, and their trust has resulted in market share gains of $5 billion in the first six months of the year. With our differentiated merchandising assortment, a comprehensive set of convenient fulfillment options, a strong balance sheet, and our deeply dedicated team, we are well-equipped to navigate the ongoing challenges of the pandemic, and continue to grow profitably in the years ahead.”

Operating Results
The Company’s total comparable sales grew 24.3 percent in the second quarter, reflecting comparable stores sales growth of 10.9 percent and digital sales growth of 195 percent. Total revenue of $23.0 billion grew 24.7 percent compared with last year, reflecting sales growth of 24.8 percent and a 16.6 percent increase in other revenue. Operating income was $2.3 billion in second quarter 2020, up 73.8 percent from $1.3 billion in 2019.

Second quarter operating income margin rate was 10.0 percent in 2020 compared with 7.2 percent in 2019, driven primarily by strong expense leverage on robust topline performance. Second quarter gross margin rate was 30.9 percent, compared with 30.6 percent in 2019. This increase reflected sales strength across our entire multi-category assortment and lower discounts driven by high sell through rates. Second quarter SG&A expense rate was 19.4 percent in 2020, compared with 21.2 percent in 2019, reflecting higher compensation costs, including investments in wages and benefits, which were more than offset by the net impact of other factors, most prominently the leverage from strong sales growth.
more detail at: https://investors.target.com/news-releases/news-release-details/target-corporation-reports-second-quarter-earnings

Related Posts

Coalition of Texas Bookstores, National Booksellers, Authors and Publishers File Appellate Brief to Uphold Grant of Preliminary Injunction Barring Implementation of Texas Censorship Law

Monday a broad coalition including Texas bookstores, national booksellers, authors and publishers filed an appellate brief in the U.S. Court of Appeals for the Fifth Circuit, requesting that it affirm the preliminary injunction of the “Reader Act” (formerly HB 900) granted by Judge Alan D. Albright of the U.S. District Court for the Western District of Texas, Austin Division. The Reader Act would require independent bookstores, national chain bookstores, large online book retailers, book publishers and other vendors to review and rate millions of books and other library materials according to sexual content if those books are sold to school libraries, and to do so according to vague labels dictated by the state without any process for judicial review. On September 18th of this year, Judge Albright issued a written opinion granting a preliminary injunction, ruling that the Act “likely violates the First Amendment by containing an unconstitutional prior restraint, compelled speech, and unconstitutional vagueness.” The State defendants filed an appeal later that day. Oral argument is scheduled for Wednesday, November 29th.

Chico’s FAS, Inc. Reports Record Second Quarter EPS

For the second quarter, the Company reported net income of $42.0 million, or $0.34 per diluted share, compared to net income of $26.2 million, or $0.21 per diluted share, for last year's second quarter. For the second quarter, net sales were $558.7 million compared to $472.1 million in last year's second quarter. This 18.4% improvement primarily reflects a comparable sales increase of 19.5%, partially offset by 26 permanent net store closures since last year's second quarter. The 19.5% comparable sales improvement was driven by an increase in transaction count and higher average dollar sale.

Catalog Industry Fly-in Finalized; Please Let Us Know If You’d Like to Attend ASAP

Please join the ACMA Board on Thursday, November 2nd, for a crucial catalog-focused lobbying day, as we'll spend a full day on Capitol Hill meeting with key members of Congress in all of our districts. • Date: Thursday, November 2, 2017, 9:00 - 5:30 pm E.T. • Cost: No fee - you just cover your own airfare, food and lodging costs • Purpose: To advance catalogers' primary goals in postal & remote sales tax • Attendance: Led by ACMA staff, our Board and our government relations firm, this event is open to all ACMA members and non-members. • RSVP: If you think you might be interested in joining us, please send us a quick email indicating so. You won't be "contractually bound" to it, but it will help us get a better idea as to how many industry members we should prepare for. Why We're Doing This - So far in 2017, Congress has made true progress in moving legislation that would reform the Postal Service and fix the growing problem of states taxing beyond their borders. Postal: The Postal Service Reform Act of 2017 (H.R. 756) received strong bipartisan support in the House Oversight and Government Reform Committee earlier this year. Now, the legislation needs approval of the House Ways and Means Committee, then the full House. Members of Congress need to hear from ACMA members so they know to support the legislation when it comes up for a vote. Click Read More below for additional detail.
Back To Top
×Close search
Search