Mainstream News

Target sees record sales amid coronavirus online shopping boom

Target sees record sales amid coronavirus online shopping
boom 1

Target hit a bullseye in the second quarter as an explosion of online shopping led the department store giant to record sales growth.

The Minneapolis-based chain on Wednesday reported a 24.3 percent spike in comparable sales for the three months ending Aug. 1 — its biggest quarterly increase on record — driven by a massive 195 percent surge in digital comparable sales.

The sales helped Target’s total revenues grow 24.7 percent from the year-earlier quarter to nearly $23 billion while earnings per share climbed 84.4 percent to $3.35, blowing out Wall Street’s estimates for $19.8 billion in revenue and earnings of roughly $1.60 per share, according to Bloomberg data.

Target said its stores played a key role in its blowout quarter, fulfilling more than 90 percent of the total sales — even as consumers showed a strong preference for alternatives to in-store shopping amid the coronavirus pandemic.

The company pointed to its 273 percent growth in services that let customers pick up online orders at a store or have them delivered the same day, which accounted for about a quarter of the sales growth.

“We remain steadfast in our focus on investing in a safe and convenient shopping experience for our guests, and their trust has resulted in market share gains of $5 billion in the first six months of the year,” Target chairman and CEO Brian Cornell said in a statement.

Price & Product Availability Tracker

Discover where products are available & compare prices

The numbers sent Target shares soaring about 6.8 percent in premarket trading to $146.21 as of 7:19 a.m.

Target also saw its cost of sales jump 24.1 percent and its selling, general and administrative expenses rise 14 percent amid higher compensation costs, such as its July move to a $15 starting wage. But the strong sales growth and other factors more than offset those bills, according to the company.

Other big-box retailers have benefitted during the COVID-19 pandemic, which has shut consumers in their homes and forced many smaller merchants to close or scale back their operations.

Hardware store giant Lowe’s reported a 34.2 percent jump in its second-quarter comparable sales on Wednesday, a day after Walmart revealed its online sales spiked 97 percent in the three months ending July 31.

Read the Full Article

Mainstream News

Prepare Now Before its too Late

Discover where products are available & compare prices

Not Quite 300: Small Group of Migrants Block Road at Thermopylae in Protest
Will you get a refund if COVID-19 closes your college campus?

You might also like