Target posts higher quarterly comp sales after a year of declines

Paterniano Del Favero
Agosto 17, 2017

The department store chain reported a second quarter 2017 comparable sales increase of 1.3% and GAAP earnings per share (EPS) from continuing operations of $1.22, an increase of 14.2% from second quarter 2016.

The company gave an indication that its efforts are paying off, and last month estimated that second-quarter sales would rise, helped by improved customer traffic and sales trends.

Same-store sales, a key measure of a retailer's health, rose 1.3 percent in the quarter, beating the 0.3 percent rise analysts expected, according to FactSet.

Target Corp. (NYSE: TGT) beat second quarter estimates in both revenue and earnings by analysts.

On a per share basis, Target earned $1.22 compared with $1.16 in the year-ago period, as the company had fewer shares outstanding.

Net income fell to $672 million, or $1.22 per share, in the second quarter, from $680 million, or $1.16 per share, and is down 1.2 percent year over year.

"I want to thank the team for their strong execution in the second quarter, which drove broad-based improvement in Target's performance".

Target's shares rose as much as 5 percent to $57.01 before the bell on Wednesday after the retailer also said it would double the number of its small-format stores.

Target has been facing tough competition against other retailers and even online retailers giants such as Wal-Mart or Amazon leaving Target struggling to keep up with the others. The Company expects its full-year 2017 comparable sales growth will be in a range around flat, plus or minus 1%. "While our recent results are encouraging, we will continue to plan prudently as we invest in building our brands, our digital channel, the value we provide our guests and elevating service levels in our stores".

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