Target (NYSE: TGT) could see its stock pierce the roof Wednesday, after the retail giant boasted some pretty impressive financial numbers.
The Minneapolis-based company said Wednesday its profit jumped 17% during the second quarter as its in-store pickup and same-day shipping services drew more customers, and it raised its outlook for the rest of the year.
Sales at the company’s stores that have been open for at least a year grew 3.4% during the quarter, also exceeding expectations. Target said same-day fulfillment services, including order pickup, drive up and Shipt same-day delivery business, contributed nearly 1.5 percentage points of its overall same-store sales growth.
Earnings per share came in at $1.82 vs. $1.62 expected, on revenue which totaled $18.42 billion vs. $18.34 billion expected. Same-store sales were up 3.4% compared to growth of 2.9% expected.
Net income rose to $938 million, or $1.82 a share, compared with $799 million, or $1.49 per share, a year earlier. That was 20 cents better than expectations for earnings per share of $1.62
Target and its rivals are searching for ways to make shopping more convenient. To compete with Amazon (NASDAQ:AMZN), they are improving their online stores and trying to ship faster. They are also betting that consumers do not mind visiting stores, especially when it’s faster than waiting for delivery.
Sales at Target stores open for at least 12 months and from its website were up 3.4%, better than expectations for growth of 2.9%.
Shares jumped $14.36, or 16.8%, to $99.89
