THE WHAT? Target has reported a 23 percent Q1 sales leap, with consumers beginning to return to stores as the U.S. vaccination drive continues.
THE DETAILS Shares in the mass retailer rose 4 percent following its prediction of growth in the last two quarters of the year, which clashed with the Wall Street forecast of a sales fall.
Q1 comparable sales rose 22.9 percent, driven by a rise in store traffic, digital sales and same-day delivery services. Revenue reached $24.20 billion as opposed to the $21.81 billion predicated, while net income rose to $2.1 billion.
THE WHY? The retailer is said to have reaped the rewards of its investment in private-label brands and services such as curbside delivery, which have heightened customer loyalty amidst the pandemic.
Talking to analysts, CEO Brian Cornell said, “With vaccinations rolling out across the country and consumers increasingly comfortable venturing out, we’ve seen an enthusiastic return to in-store shopping.”