Target (NYSE:TGT) on Wednesday blew past every forecast on Wall Street for its fiscal second quarter as it attracted millions of new customers online, setting a record for same-store sales that drove profits up by an eye-popping 80.3% to $1.7 billion.
Sales online and at stores open for at least a year climbed by 24.3% during the quarter ended Aug. 1— an all-time high for the retailer. Same-store sales climbed by 10.9% while the company’s digital sales nearly tripled from a year earlier.
CEO Brian Cornell said on a call with reporters that the retailer’s mix of merchandise and online options resonated with customers who sought out safe and convenient ways to shop in the midst of the pandemic. The company benefited from its designation as an essential retailer during U.S. lockdowns that forced some competitors to close.
"Throughout the year and over the last few years, we’ve built tremendous trust with the guest," he said on the call. He said that relationship with customers has "been one of the big drivers behind our success."
The retailer’s second-quarter net income soared by more than 80.3% to $1.7 billion, or $3.35 per share, $938 million, or $1.82 per share, a year earlier.
After excluding items, Target earned $3.38 per share, more than double the $1.63 expected by analysts.
The company’s total revenue rose 24.7% to $23 billion from $18.42 billion a year prior, beating analysts’ expectations of $20.09 billion.
TGT roared ahead in the early going $11.95, or 8.7%, to $148.85.
