Target Corp. comparable sales rose a record 24.3% in the three months through June as customers loaded up on electronics, home goods and food and essentials, taking advantage of same-day services while riding out the COVID-19 pandemic from home.
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The Minneapolis-based big-box retailer reported second-quarter profit rose 80% year-over-year to $1.69 billion, or an adjusted $3.38 per share. Revenue increased 25% from a year earlier to $23 billion.
The results easily topped the adjusted earnings of $1.62 a share and revenue of $20.09 billion that Wall Street analysts surveyed by Refinitiv were anticipating.
“Our second-quarter comparable sales growth of 24.3 percent is the strongest we have ever reported, which is a true testament to the resilience of our team and the durability of our business model,” Target CEO Brian Cornell said in a statement.
Sales at stores open at least a year grew 10.9% versus last year while comparable online sales nearly tripled, climbing 195%. Electronics sales were up 70% while home decor saw a 30% increase. Food and essentials both saw sales increases of 20%.
Same-day service usage increased 273% as the number of curbside pickups soared over 700% and sales fulfiled by Shipt, the company's same-day delivery, soared more than 350%. In-store pick-up sales were up more than 60%.
Target withdrew its 2020 forecast earlier this year due to uncertainty caused by COVID-19. It did not provide an update.
Target shares were up 6.78% this year through Tuesday, outperforming the S&P 500's 4.92% gain.