Target’s comparable sales jumped 22.9% in Q1 2021 on investments in exclusive brands and services such as curbside pickup, according to the company’s press release. The company’s revenue was $24.20 billion in the quarter, more than expected $21.81 billion.
Target’s net income was $2.1 billion, or $4.17 per share, up from $284 million or $0.56 per share a year earlier.
Adjusted earnings per share was $3.69, more than expected $2.25.
Comparable sales grew 22.9% from a year earlier, more than expected 10.7%.
Comparable store sales jumped 18%, as digital comparable sales surged 50%.
Sales in Target’s apparel were the strongest, rising by at least 60% from a year ago in the quarter.
Hardlines, that includes sports equipment and consumer electronics rose in the high 30% range as home sales increased in the mid-30% range.
Sales of Target’s own brands jumped 36% from last year, a record increase.
Target is now on course to invest as much as $4 billion this year to enhance store footprint and customer experience.
The retailer expects comparable sales in Q2 to grow mid-to-high single digit.
Q2 operating margin is expected to be above Q2 2019 rate of 7.2% and not as high as last year’s 10.0%.
Target projects positive single-digit comparable sales in Q3 and Q4 this year, with operating margin rate above last year’s 7.0%.
Target stock is currently gaining. TGT: NYSE is up 2.46%.
