Target said Wednesday its second-quarter earnings rose 17% as its store pick-up and same-day shipments attracted more customers and increased prospects for the rest of the year.
The company's sales Business that has been open for at least a year grew by 3.4% in the quarter, exceeding expectations. Target said that same-day fulfillment services, including same-day pick-up, pick-up and delivery, contributed nearly 1.5 percentage points to sales growth in the same business, reaching record highs.
The target for the second fiscal quarter ended August 3, compared to analysts' expectations, based on refinancing data:
- Earnings per share: $ 1.82 compared to $ 1
- Revenue: $ 18.42 billion from $ 18.34 billion expected
- Revenues in the same business increased by 3.4% from expected growth of 2.9%
Target and his colleagues are looking for ways to make shopping more enjoyable. To compete with Amazon, they are improving their online stores and trying to ship faster. They also bet that consumers do not mind visiting stores, especially when it's faster than waiting for delivery.
"By engaging customers with a compelling product line, a range of convenience options, competitive pricing, and a pleasant shopping experience, we are increasing the relevance of Target and deepening the relationship between our guests and our brand," said Brian Cornell, CEO by Target in a statement announcing the results of the win.
Net income increased to $ 938 million, or $ 1.82 per share, compared to $ 799 million or $ 1.49 per share a year ago. This was 20 cents more than expected for earnings per share of $ 1.62 based on refinish data.
Total revenue increased 3.6% to $ 18.42 billion from $ 17.78 billion a year ago, exceeding estimates for $ 18.34 billion.
Turnover in Target stores Opened at least 12 months, the site grew 3.4%, exceeding growth expectations by 2.9%. A year ago, sales in the same business increased by 6.5%. According to Target, traffic increased 2.4% in the last quarter. Meanwhile, digital sales increased 34%, compared to a 42% increase in the first quarter.
As with Walmart, Target also anticipates a slight decline in Amazon's 48-hour Prime Day event in early July.
] Cornell said the company performed "excellence" in the first half of 2019, giving it the "confidence" it needed to boost expectations. The target now is for adjusted earnings per share to be between $ 5.90 and $ 6.20 (previously $ 5.75 to $ 6.05).
"Traffic and sales continue to grow," said Cornell.
Ziel's report follows on from bigger rival Walmart & # 39; s, which posted gains last week that exceeded expectations and also improved the outlook for the year. This despite the ongoing threat of additional tariffs, which come into force in the US. "Trade war with China.
Analysts have largely expected that Target will continue to see revenue growth in the same business, while other retailers, such as department store chains, are having trouble attracting traffic. Target also suffered a register failure in the last quarter, which was not enough to put a significant strain on sales.
Target's report goes back to its bigger rival, Walmart, who posted gains last week that exceeded expectations and improved outlooks for the year. This despite the ongoing threat of additional tariffs, which comes into force during the US trade war with China.
Analysts have largely anticipated that Target will continue to see revenue growth in the same stores, while other retailers, such as department store chains, are having trouble attracting traffic. While Target suffered a registry outage in the last quarter that could easily impact sales in the same business, traffic is expected to continue to grow in the quarter.
Target announced this week the launch of a new food line called Good an & Gather is the largest private label company to date. The retailer has invested a lot in the incubation of its own brands. It has also invested in shop conversions, opened small-scale locations in major cities such as New York, and introduced a roadside pick-up for online ordering.
Target shares with a market capitalization of $ 44.2 billion have risen by more than 30% year.