Target (NYSE: TGT) on Wednesday reported its best quarter to date after reeling in millions of new online customers and increasing profits by over 80% to USD1.7 Billion. Shares were up 12% Wednesday morning.
“Target Corporation today announced its second quarter 2020 results, which reflect the continuation of heightened sales volume and significant investments in response to the COVID-19 pandemic,” the company said in a press release.
Both online and stores (open for over a year) witnessed a sales growth of 24.3% throughout the quarter ended August 1. Same-store sales increased 10.9% meanwhile online sales managed to triple compared to the previous year.
The quarterly report reflected an adjusted EPS of USD3.38 in comparison to the anticipated USD1.62. Furthermore, revenue totaled USD23 Billion compared to the expected USD20.09 Million.
Brian Cornell, Target’s CEO, explained on a call that amid the global pandemic, customers opted to shop at Target as it offered safe and favorable options through their merchandise and digital platform. The company profited after being classified an essential retailer when several competitors were forced to close.
“Throughout the year and over the last few years, we’ve built tremendous trust with the guest,” Cornell said on the call. He said that relationship with customers has “been one of the big drivers behind our success.”
The second quarter brought in strong traffic for the retailer as consumers stocked up for lockdowns. Sales proved to skyrocket in all five of Target’s product divisions. Electronic sales rose higher than ever with an increase of over 70% in comparison to the previous year. Home and beauty grew 30% and 20%, food and beverage climbed 20% and lastly apparel surged by double digits.