A Financial Bullseye for Target
Minneapolis, MN (KROC AM News) - Now would be a good time to own stock in a certain Minnesota-based retailer.
Target has announced some big financial numbers from its second quarter and the news has led to a surge in its common stock price.
Pre-market trading saw the stock price surge by more than 5-percent and a record all-time high was expected when markets open Wednesday morning.
Target says sales rose 6.5 percent, the highest number in 13 years. The retailer’s online sales were up 41 percent. Target also reported a profit jump of 16-percent on revenues that were up 7-percent.
Target credits its huge investments in stores and online operations for the successful quarter.
Here are the numbers:
- Traffic growth of 6.4 percent is by far the strongest since the Company began reporting traffic in 2008.
-- Comparable sales increased 6.5 percent, the best comp at Target in 13 years.
-- Comparable store sales grew 4.9 percent.
-- Comparable digital sales grew 41 percent, on top of 32 percent growth a year ago.
"We are extremely pleased with Target's second-quarter results, which demonstrate our guests' excitement for the enhanced and differentiated shopping experience we're building. For the second consecutive quarter, traffic growth is better than we've seen in well over 10 years, driving 6.5 percent comp growth - Target's best in 13 years," said Brian Cornell, chairman and chief executive officer of Target Corporation. "We laid out a clear strategy at the beginning of 2017, and throughout this year we've been accelerating the pace of execution. We're on track to deliver a strong back half and we've updated our full-year guidance to reflect the strength of our business and the consumer economy. As we look ahead to 2019, we expect to achieve scale across the full slate of our initiatives - creating efficiencies and cost-savings, further strengthening our guest experience and positioning Target to continue gaining market share."