Led by Apparel Sales, Target Improves Revenue Growth
Target Corp reported a slight sales increase in the second quarter. For the three months ending on June 30, the total revenues of $25.5 billion showed a 2.7 percent rise over last year’s figures. Additionally, the company’s operating income surged by 36.6 percent, reaching $1.6 billion.
The corporation expressed caution, stating, “Target believes its full-year guidance range of a 0 to 2 percent increase in its comparable sales remains appropriate, it now believes the increase will more likely be in the lower half of that range.” In contrast, the retailer revised its guidance on adjusted earnings per share for the entire year, with a new anticipated range of $9 to $9.70, increased from the previous estimate of $8.60 to $9.60.
Before the opening bell, Target’s share price remained relatively steady, valuing each share at $144.33. Also, certain product categories showed improving trends, said Brian Cornell, Chairman and CEO of Target Corp.
“We also saw improving trends across our discretionary categories, most notably in apparel, and we’re seeing continued strength in beauty. Looking ahead, even as we maintain the measured outlook that has served us well, we are focused on building on this positive momentum by executing our strategy and providing the unique combination of newness and value that consumers can only find at Target,” he stated.
Data from the second quarter indicated that comparable sales of apparel grew by 3 percent. Similarly, the beauty segment saw high-single digit gains. The operating income margin increased to 6.4 percent, up 160 basis points as compared to the same period in the previous year. The adjusted earnings per share reached $2.57, marking a year-over-year increase of 40 percent.