Target posts Q2 adjusted EPS growth of 19.8 percent

Target Corporation reported comparable sales growth of 6.5 percent and traffic growth of 6.4 percent in the second quarter. The Company reported GAAP EPS from continuing operations of 1.49 dollars, up 22.7 percent from 1.21 dollars in second quarter 2017, while adjusted EPS rose 19.8 percent to 1.47 dollars compared to 1.22 dollars last year.

“For the second consecutive quarter, traffic growth is better than we’ve seen in well over 10 years, driving 6.5 percent comp growth - Target’s best in 13 years,” said Brian Cornell, Chairman and CEO of Target Corporation in a statement, adding, “We’re on track to deliver a strong back half and we’ve updated our full year guidance to reflect the strength of our business and the consumer economy.”

Target’s Q2 revenues up 6.9 percent

Total second quarter revenue of 17.8 billion dollars increased 6.9 percent from 16.6 billion dollars last year, reflecting sales growth of 7 percent and growth in other revenue of 0.2 percent. The compant said, comparable digital channel sales grew 41 percent and contributed 1.5 percentage points of comparable sales growth.

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Operating income for the quarter was 1,133 million dollars, up 3.6 percent from 1,093 million dollars in 2017. Second quarter operating income margin rate was 6.4 percent, compared with 6.6 percent in 2017, while gross margin rate was 30.3 percent, compared with 30.4 percent in 2017.

Target updates full-year earnings guidance

For both the third quarter and second half of 2018, Target expects comparable sales growth in line with the 4.8 percent that the company delivered in the first half of 2018. For the third quarter, the company expects both GAAP EPS from continuing operations and adjusted EPS of 1 dollar to 1.20 dollars compared with GAAP EPS from continuing operations of 0.87 dollar and adjusted EPS of 0.90 dollars in third quarter 2017.

For full-year 2018, Target now expects GAAP EPS from continuing operations and adjusted EPS of 5.30 dollars to 5.50 dollars, compared with the prior range of 5.15 dollars to 5.45 dollars.

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