Double-Digit Revenue Growth Isn't Even the Best Part of Target's Q1
Target Corp. (NYSE: TGT) released its fiscal first-quarter financial results before the markets opened on Tuesday. The big-box retailer said that it had $0.56 in earnings per share (EPS) and $19.62 billion in revenue, which compares with consensus estimates of $0.68 in EPS and $19.0 billion in revenue. The same period of last year reportedly had $1.53 in EPS and $17.63 billion in revenue.
Total revenue increased 11.3% year over year, reflecting sales growth of 11.3%, combined with a 7.7% increase in other revenue.
During the quarter, comparable sales grew 10.8% year over year, driven by a 12.5% increase in average basket, as guests made fewer, but bigger shopping trips. In terms of the breakdown, store comparable sales increased 0.9% and digital comparable sales grew 141%.
The company did not provide any guidance for the fiscal second quarter. However, consensus estimates are calling for $1.48 in EPS and $19.22 billion in revenue for the quarter.
Brian Cornell, board chair and CEO of Target, commented:
Throughout the first quarter, our team and guests faced unprecedented challenges arising from the spread of COVID-19. In the face of those challenges, our team showed extraordinary resilience as guests relied on Target as a trusted resource for their families. With our stores at the center of our strategy, and a significant investment in the safety of our team and guests, our operations had the agility and flexibility needed to meet the changing needs of our business. With the dedication of our team, the benefit of a sustainable business model and a strong balance sheet, we are confident Target will emerge from this crisis an even stronger retailer, with higher affinity and trust from our guests.
Target stock closed Tuesday at $123.17 a share, in a 52-week range of $76.80 to $130.24. The consensus price target is $121.76. Following the announcement, the share price was up over 1% at $125.08 in early trading indications Wednesday.