Target Reports Record-Breaking First Quarter Earnings

Target Corp. reported record-breaking first quarter earnings, as the retailer has capitalized on COVID-19 related shopper behavior and ramped up its private brands.
Target store

The retailer reported market share gains of $1 billion, while its net income skyrocketed to $2.097 billion, or $4.17 per share. That’s up from $284 million, or $0.56 per share in the same period last year, Chain Store Age reported. Excluding items, earnings blew past analysts’ expectations of $2.21 per share to $3.69 per share. 

“Our performance in the first quarter was outstanding on every measure, and showcased the power of putting our stores at the center of our strategy,” Chairman and CEO Brian Cornell said in a statement. “Importantly, market-share gains of more than $1 billion in the first quarter, on top of $1 billion in share gains a year ago, demonstrate Target’s continued relevance with our guests, even as they have many more shopping options compared with a year ago.”

During the quarter, sales rose 23% to nearly $24 billion, while comparable-sales were up 22.9%. Store sales were up 18% and digital comp sales jumped 50%. Target’s omnichannel solutions were huge successes during the quarter, with same-day services (order pickup and drive-up) increasing 90% from last year. Drive-up services in particular jumped 123%. The majority of digital orders were fulfilled in Target stores. And stores accounted for 95% of the company’s total sales for the quarter.

“Our stores were the star of the show this quarter,” Cornell said.

Apparel had a day in the sun during the quarter, with consumers returning back to normal life amid the COVID-19 vaccination program rollout. The category was up 60% compared to the same period last year. Hardlines grew roughly in the high-30% range, and home sales rose in the mid-30% range, CSA reported. 

See the full story at Chain Store Age