Financial Performance and Key Metrics - Q2 comparable sales grew 2%, at the top end of the guidance range, driven entirely by traffic [8] - Q2 EPS of $2.57, representing growth of more than 42% over last year, well above the high end of guidance [8] - Gross margin rate of 28.9% in Q2, about 190 basis points higher than a year ago, driven by merchandising strategies, category sales mix, and lower inventory shrink [41] - Operating margin rate of 6.4% in Q2, about 160 basis points higher than last year, reflecting improved profitability [43] - After-tax ROIC of 16.6% through the 12 months ending in Q2, nearly 3 percentage points higher than a year ago [47] Business Line Performance - Digital comps grew in the high single digits in Q2, with same-day services (Drive Up and Target Circle 360) growing in the low teens [9] - Apparel comp sales grew by more than 3%, with All in Motion brand delivering growth in the low teens [10] - Beauty comp growth of 9% in Q2, continuing to gain market share [10] - Food and beverage comp sales grew in the low single digits, driven by seasonal moments and new items [23] - Essentials comp sales grew in the low single digits, with strength in health category products like protein drinks and meal supplements [24] Market and Consumer Trends - Consumers remain resilient but focused on value, delaying purchases until the moment of need [12] - Target Circle loyalty platform added over 2 million new members in Q2, with over 100 million total members [11] - Roundel advertising business delivered double-digit growth in Q2, contributing to gross margin and other revenue [12] - Target Circle 360 same-day delivery grew in the low teens, with Drive Up generating over $2 billion in sales in Q2 [9][25] Strategic Initiatives and Industry Competition - Company is focused on providing unbeatable value through low everyday prices, personalized offers, and high-quality owned brands [13] - Investments in AI technology to enhance team productivity and guest service [15] - Expansion of sortation centers to improve delivery speed and reduce costs, with the 11th center opening in Detroit [39] - Continued focus on retail fundamentals, including in-stock reliability and efficient fulfillment [14][32] Management Commentary on Future Outlook - Q3 comparable sales growth expected in the 0% to 2% range, with full-year comp guidance remaining at 0% to 2% growth [48] - Full-year GAAP and adjusted EPS range raised to $9 to $9.70, up from the prior range of $8.60 to $9.60 [48] - Long-term goal to expand operating margin rate back to and potentially beyond the 6% annual rate pre-pandemic [14] - Focus on controlling inventory shrink, with better-than-expected results in Q2 and continued progress expected in Q3 and Q4 [42] Other Important Information - Target Circle Week in July generated the highest digital traffic of the year so far, with two-thirds of transactions made by Target Circle members [11][25] - Company reduced prices on about 5,000 frequently purchased items, leading to accelerated unit and dollar sales trends [11] - Investments in technology, including GenAI integration in stores, have improved team efficiency and guest service [35] Q&A Session Summary Question: Consumer behavior and guidance reconciliation [53] - Management noted that consumer behavior remains consistent with previous quarters, with a focus on value and newness driving Q2 performance [54] - Guidance for Q3 and full-year comp sales reflects a measured approach, with expectations for continued growth [54][55] Question: Operating margin sustainability [57] - Management highlighted progress in improving operating margins, driven by top-line growth, efficiency improvements, and reduced shrink [58] - Focus on retail fundamentals and execution has contributed to margin expansion [59] Question: Merchandise margin drivers [61] - Efficiency improvements, particularly in digital fulfillment and inventory management, have supported merchandise margins [62] Question: Discretionary comps and market share [76] - Discretionary categories like apparel and beauty are showing strength, with growth driven by on-trend, affordable products [78] - Management expects continued improvement in discretionary categories as purchase cycles normalize [77] Question: Target Circle and same-day delivery growth [70] - Target Circle 360 and Drive Up services are growing, with Drive Up generating $2 billion in Q2 sales [74] - Management sees long-term growth potential in these services, which also drive in-store traffic [72][74] Question: Long-term Food & Beverage growth [81] - Management sees significant growth potential in Food & Beverage, driven by affordability, newness, and convenience [83] - Continued expansion of owned brands and national brand partnerships will support this growth [82]

Wednesday, August 21st, 2024Pre-market futures are up slightly this morning. This follows a break in the sustained gains on the S&P 500 and Nasdaq yesterday — these streaks had been for eight-straight trading days higher. It would appear market appetites are coming back around today, with the Dow currently up +70 points at this hour, the S&P +11 and the Nasdaq +42 points.Retail Earnings Morning: TGT, M, TJXTarget (TGT Quick Quote - Free Report) shares are jumping higher ahead of the bell on its Q2 report ...

Target TodayTGTTarget$161.27 +18.06 (+12.61%) 52-Week Range$102.93▼$181.86Dividend Yield2.78%P/E Ratio18.10Price Target$174.57Add to WatchlistTarget Corporation NYSE: TGT recently released its earnings report for the second quarter of 2024. The company’s latest report exceeded the expectations of its analyst community, prompting a surge in investor confidence and Target’s stock price. The company reported strong financial performance, driven by a return to comparable sales growth, robust digital sales, and ...

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For the quarter ended July 2024, Target (TGT) reported revenue of $25.45 billion, up 2.7% over the same period last year. EPS came in at $2.57, compared to $1.80 in the year-ago quarter.The reported revenue represents a surprise of +0.89% over the Zacks Consensus Estimate of $25.23 billion. With the consensus EPS estimate being $2.16, the EPS surprise was +18.98%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectatio ...

About this content About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup ...

Target Corp (NYSE:TGT) announced better-than-expected second-quarter earnings and revenue earlier, with sales rising as consumers splurged on discretionary items. While the retailer kept its full-year sales forecast, it raised its profit outlook. At last check, TGT was up 16.1% to trade at $166.29.Shares are bouncing off their lowest level since November, and are also on track for their best single-day percentage gain this year. TGT hit its highest level in about four months and is now looking to close abo ...

Key TakeawaysTarget shares jumped Wednesday after the retailer posted second-quarter earnings that beat expectations.Comparable store sales returned to growth in the quarter, as Target said traffic in stores and digital sales grew from the same time last year.The retailer lifted its projections for full-year profits, thanks to the strong second-quarter results. Target (TGT) shares soared Wednesday after the retailer's second-quarter earnings beat estimates, leading Target to lift its projections for full-ye ...

Target’s earnings and revenue beat Wall Street’s forecasts in the latest sign that shoppers are flocking to discount chains as inflation has left prices stubbornly high.The “cheap chic” retailer raised its full-year profit forecast on Wednesday and reported its first increase in quarterly comparable sales in over a year, driven by price cuts that attracted more shoppers to its stores.Shares of the Minneapolis-based retailer rose 11% in pre-market trading, after the chain said it expects 2024 profit in the r ...

Target (TGT) came out with quarterly earnings of $2.57 per share, beating the Zacks Consensus Estimate of $2.16 per share. This compares to earnings of $1.80 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 18.98%. A quarter ago, it was expected that this retailer would post earnings of $2.05 per share when it actually produced earnings of $2.03, delivering a surprise of -0.98%.Over the last four quarters, the company has surpa ...