Target revealed that its sales rose 23% as the investments made in exclusive brands and services paid off. Like Walmart, the retailer said that it’s benefiting from the fact that the economy reopens. Apparel was Target’s strong suit in the quarter, with sales increase 60% year-over-year. In February, its activewear brand – All in Motion – was the latest private label to reach $1 billion in sales.
For the quarter ending May 1, Target reported an adjusted EPS of $3.69 compared to the $2.25 estimated. At the same time, revenue figures came in at $24.20 billion versus $21.81 billion expected. Its net income jumped to $2.1 billion, more than sevenfold from the year-ago period.
According to the company’s CFO, Michael Fiddelke, Target is on track to invest approx. $4 billion in 2021 to improve customer experience and open 30 to 40 new stores. Also, the company announced it will remodel 150 stores and implement curbside pickups at most of its locations.
At the moment of writing, Target stock price is trading almost 3% higher.
Sources: cnbc.com, finance.yahoo.com