Target smashes profit expectations as e-commerce improves

TNS

May 23, 2019

MINNEAPOLIS  — Target Corp. said its profit jumped 9% in the latest quarter, smashing expectations as its investments to make digital shopping easier and more convenient paid off. Sales at comparable stores and through digital orders from its website and mobile applications grew 4.8%.

Digital sales accounted for a hefty 44% of sales growth — half of which came from shoppers who picked up their online orders at stores that day or who used the retailer’s same-day home delivery service, Shipt.

The Minneapolis-based company said it earned $1.14 billion in the three months ending May 4, the first quarter of its fiscal year. That amounted to $1.53 a share, well above the expectation of $1.43 of analysts surveyed by Refinitiv.

Revenue grew 5% to $17.6 billion which was slightly above analysts’ expectations.

The retailer credited continuing investments in store remodels and its ability to quickly fill ecommerce orders with rising traffic.