NEW YORK (AP) – The goal topped expectations in just about every way during the second quarter as it pushes faster delivery and invests heavily in new private label brands.
Comparable store sales, which include online sales, rose 3.4% as customer traffic jumped 2.4%. The measure includes sales in stores that are open for at least one year and online sales. Sales in established stores increased 1.5%. Online sales rose 34%.
The Minneapolis company raised expectations for the year and sent shares up nearly 1
Target highlights the successes of major cash giants as they make a deeper harvest in their competition with Amazon.com.
Walmart raised expectations for the year last week after a very strong quarter.
Both expand online services, bring in new goods and modernize stores. Off-price chains like T.J. Maxx also does well and resonates with buyers who love treasure hunting.
They take market share from mall-based clothing chains and department stores such as JC Penneys, Macy's and Kohl, which are struggling with weak sales.
Target spends more than $ 7 billion through 2020 to update its stores, open smaller stores in urban areas and expand online.
Target stores are still the company's strongest asset even though the battle for customers has moved online.
19659002] The company allows buyers to collect online orders on the street. Through Shipt, which it purchased in December 2017, buyers can get deliveries to the doorstep in a few hours because there is probably a Target store nearby. Goods purchased in a store can be delivered to homes in a number of cities, again due to Target's huge footprint.
The company said sales fulfilled via Shipt as well as at the outskirts or pickup collection more than doubled in the past year, driving nearly three-quarters of its 34% sales increase.
At the same time, Target is improving the goods in stores. Over the next month, it will try to produce groceries in private label as it tries to increase grocery sales.
15. In September, 650 products will be displayed on the store shelves under the brand "Good & Gather." It will expand to 2,000 products by the end of next year. The company expects Good & Gather to be a multi-billion dollar business by the end of next year.
"By appealing to buyers through a compelling assortment, a series of convenience-driven fulfillment options, competitive pricing and a pleasant shopping experience, we increase the relevance of Targets and deepen the relationship between our guests and our brand," said Brian Cornell, Chairman and CEO of Target in a statement.
The profits of Target Corp. jumped 17.4% to $ 938 million, or $ 1.82 per share. share. That's 21 cents better than Wall Street was looking for, according to a study by Zacks Investment Research.
The Minneapolis dealership's revenue was $ 18.42 billion, also exceeding previous expectations.
The company now expects full-year revenue between $ 5.90 and $ 6.20 per share, up May guidance of between $ 5.75 and $ 6.05.
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