Marketing
Target continues on healthy sales path
August 19, 2021
Target's second quarter earnings, in which comparable sales grew 9.8% and digital sales has grown nearly 55% in 2021, are evidence the retailer's "durable model" and continued investment in technology are paying off, according to CEO Brian Cornell.
The earnings report released this week included the following highlights in a press release:
- Total revenue of $25.2 billion grew 9.5% compared with last year, driven by total sales growth of 9.4% and a 20.0% increase in other revenue.
- Operating income was $2.5 billion in second quarter 2021, up 7.2%from $2.3 billion in 2020.
- Second quarter GAAP EPS of $3.65 was 8.9% higher than last year, and adjusted EP1 of $3.64 was 7.9% higher than last year.
"In the second quarter, our business generated continued growth on top of record increases a year ago, reinforcing Target's leadership position in retail. We've spent years building and investing in the durable model we have today, which is supported by a differentiated strategy and the best team in retail," Cornell said in the release.
"Even after unprecedented growth over the last two years, we see much more opportunity ahead of us, and we're leaning into opportunities to invest in the long-term growth and resiliency of our business. Our team and operating model can seamlessly adapt to changes in the environment, and we're well-positioned to deliver outstanding performance in the back half of the year."
For the second half of 2021, Target expects high single digit growth in comparable sales and a full year operating income margin rate of 8% or higher. Minneapolis-based Target operates more than 1,900 stores.
