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Target second quarter comparable sales rise 1.3 percent

By Prachi Singh

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Report

Target Corporation has reported a second quarter comparable sales increase of 1.3 percent and GAAP EPS from continuing operations of 1.22 dollars, an increase of 14.2 percent adjusted EPS was 1.23 dollars, an increase of 0.1 percent from second quarter 2016.

“I want to thank the team for their strong execution in the second quarter, which drove broad-based improvement in Target’s performance. In particular, we are pleased that second-quarter traffic increased more than 2 percent, reflecting growth in both our store and digital channels,” said Brian Cornell, Chairman and CEO of Target in a media release.

Second quarter sales up 1.6 percent

Second quarter sales increased 1.6 percent to 16.4 billion dollars from 16.2 billion dollars last year, reflecting a 1.3 percent comparable sales increase combined with the benefit from sales in non-mature stores. Comparable digital channel sales grew 32 percent and contributed 1.1 percentage points to comparable sales growth. Segment EBIT, were 1,114 million dollars in the quarter, a decrease of 10.3 percent from 1,241 million dollars in second quarter 2016.

Second quarter EBIT margin rate was 6.8 percent, compared with 7.7 percent in 2016 and gross margin rate was 30.5 percent, compared with 30.9 percent in 2016, reflecting increased digital fulfillment costs and the company’s efforts to improve pricing and promotions.

Target expects to achieve comparable sales growth in Q3

Target expects that both third quarter and fourth quarter sales growth will be within the range the company experienced in the first and second quarters of 2017 and its full-year comparable sales growth to be in a range around flat, plus or minus 1 percent.

For third quarter, the company expects both GAAP EPS from continuing operations and adjusted EPS of 0.75 dollar to 0.95 dollar. For full-year, GAAP EPS from continuing operations is expected to range between 4.35 dollars to 4.55 dollars, and adjusted EPS of 4.34 dollars to 4.54 dollars, compared with prior guidance of 3.80 dollars to 4.20 dollars.

Picture:Target website

Target