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Better than expected Q1 results for Target

Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
Target completes the triad of retail department stores that have had a good Q1.

Earlier today, Target, the American retail corporation, released its financial report for the previous quarter.

Q1 net income was $284 million, less than half of last year’s $795 million. FactSet was looking for $19.02 billion in revenue, but the result exceeded it: $19.62 billion. Also, it’s on a growing trend from last year's $17.63 billion.  

DriveUp, same-day services, and other programs meant to allow customers to shop online, pick-up from the store, or deliver service skyrocketed by 278%. But Target is not the only one whose digital usage increased. Walmart and Home Depot saw increases in online shopping of 74%. 

Moreover, the sales in the food and beverage departments increased by 20%. The only category that disappointed was the “apparel”, which was down 20%.

Target thickened the row of those who spent money on improving its employees' situation during the pandemic. $500 million went to increase the wages for those working in the frontline, and for enhancing safety and sanitary measures. Its counterparts, Walmart and Home Depot, spent $900 million, and $850 million, respectively.  

In pre-market, the stock price gained 0.2%. Over the past year, stocks gained 71%, while USA500 added 3%. 

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This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.