Right on Target: The big-box retail chain hit a bull’s-eye in Q2

Target had a monstrous Q2, signifying that their massive list of investments is paying off, as they try and gain ground on Walmart and Amazon.


August 23, 2018

Not done with big-retail? Good, because shares of Target shot up yesterday, after the retailer reported “unprecedented” growth in foot traffic at its stores, along with better-than-expected second-quarter profit, revenue, and in-store sales.

The industry giant also said digital sales skyrocketed more than 40% during the quarter.

The company had such a successful Q2 in fact, that it raised its earnings outlook for the year.

Touché, Targét

The retailer has been reinvesting in its business ever since it disclosed its game plan at the start of last year to toss $7B toward its e-commerce platform, beef up its in-house brands, start new small-format stores, and renovate existing locations.

According to Target’s CEO Brian Cornell, the company reported its strongest same-store sales growth in 13 years.

Looks like those investments are paying off

Target shares are up about 27%, bringing the retailer’s market cap to roughly $44.1B (still miles behind their main competitor, Walmart, at $282B).

According to CNBC, The company’s Q2 net income was $799m, compared to the expected $671m, with revenue climbing nearly 7% to $17.8B from $16.63B a year ago.

Daily briefings, straight to your inbox

Business and tech news in 5 minutes or less

Join over 1 million people who read The Hustle

Psst

How'd Bezos build a billion dollar empire?

In 1994, Jeff Bezos discovered a shocking stat: Internet usage grew 2,300% per year.

Data shows where markets are headed.

And that’s why we built Trends — to show you up-and-coming market opportunities about to explode. Interested?

Join us, it's free.

Look, you came to this site because you saw something cool. But here’s the deal. This site is actually a daily email that covers the important news in business, tech, and culture.

So, if you like what you’re reading, give the email a try.