Continue Reading Below
CEO Brian Cornell attributed the results to "important investments to build a durable operating and financial model."
Companywide, revenue rose to $17.6 billion in the three months through May 4, better than analysts predicted. Profits were $795 million, or adjusted to $1.53 per share, higher than Wall Street expected.
E-commerce sales at the Minneapolis-based retailer grew 42 percent year-over-year, while same-store sales increased 4.8 percent.
Target reiterated its full-year profit guidance of as much as $6.05 per share, despite the threat of additional tariffs on Chinese imports.
"Throughout this year, we will continue to extend the reach of our same-day fulfillment options, strengthen our portfolio of owned and exclusive brands, remodel and open more stores and invest in our team." Cornell said in a statement.
President Trump previously increased existing tariffs on $200 billion in Chinese goods, from 10 percent to 25 percent, as trade negotiations between the two nations faltered.
While experts say retailers have largely been able to largely mitigate any price increases from those duties, the White House has taken initial steps to impose new tariffs on another $300 billion in shipments from the Asian nation.
Such a move, retailers warn, would lead to higher costs and could force some companies to close physical locations. Last year, Cornell said Target was "concerned about tariffs because they would increase prices on everyday products for American families,"
The United States Trade Representative on Tuesday requested official comments on what products should be excluded from the new duties.