Shares of Target (NYSE: TGT) were set to surge Wednesday after the retailer reported unprecedented growth in foot traffic at its stores, along with second-quarter profit, revenue and comparable store sales that surpassed analysts' expectations.
The big-box retailer also said digital sales skyrocketed more than 40% during the quarter. Building on that momentum, it raised its earnings outlook for the full year.
Target has been focused on reinvesting in its business ever since it laid out a strategy at the start of last year to pour $7 billion into expanding its e-commerce platform, bulking up its lineup of in-house brands, opening new small-format stores and remodeling existing locations.
A healthy U.S. economy, rebounding consumer confidence and record low unemployment are also benefiting retailers like Target and WalMart (NYSE: WMT).
Net income was $799 million, or $1.49 per share, compared with $671 million, or $1.21 a share, a year ago. Excluding one-time items, Target earned $1.47 a share, seven cents ahead of analysts' expectations.
Revenue climbed nearly 7% to $17.8 billion from $16.63 billion a year ago, again ahead of an expected $17.28 billion in sales.
Target now expects adjusted earnings per share of between $5.30 and $5.50 for 2018, compared with a prior range of between $5.15 and $5.45 a share in fiscal 2018.
Shares in the retail giant leaped $4.61, or 5.5%, to $87.94, a new 52-week high
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