THE WHAT? Target has reported its results for the second quarter of the current financial year. The US retailer saw comparable sales rise 8.9 percent on top of its record growth last year (+24.3 percent).
THE DETAILS Growth was attributed entirely to increased traffic, Target said, with store comparable sales up 8.7 percent and digital comparable sales rising 10 percent. GAAP earnings per share grew 8.9 percent to reach US$3.65.
The company revised its fiscal 2021 guidance, forecasting a full year operating income margin rate of 8 percent or higher and high single digit growth in comparable sales.
THE WHY? Brian Cornell, chairman and CEO of Target Corporation, explains, “In the second quarter, our business generated continued growth on top of record increases a year ago, reinforcing Target’s leadership position in retail. We’ve spent years building and investing in the durable model we have today, which is supported by a differentiated strategy and the best team in retail.
“Even after unprecedented growth over the last two years, we see much more opportunity ahead of us, and we’re leaning into opportunities to invest in the long-term growth and resiliency of our business. Our team and operating model can seamlessly adapt to changes in the environment, and we’re well-positioned to deliver outstanding performance in the back half of the year.”