Fresh Sales Help Target Ace its Q2 2015
MINNEAPOLIS, MN - Target has announced its Q2 2015 financial report, with CEO Brian Cornell citing fresh foods and healthy foods as a major contributor to its positive sales growth in the quarter.
“We're also focused on ways to elevate our food presentation and experience to fit the way the guests live and shop,” Cornell said on a conference call to investors. “We know we have an opportunity to provide fresh, healthy options and more relevant and localized assortment, as our guests are responding to healthy choices we're offering today. Within food, our market share and wellness is already double our food share overall.”
On the call to investors, Cornell shared that Target has seen double-digit sales growth in fresh and natural categories, which he believes shows that consumers are responding well when they enhance those offerings.
In total, second quarter sales increased 2.8 percent to $17.4 billion, reflecting a 2.4 percent increase in comparable sales combined with sales from new stores. According to the release, Target returned $1 billion to shareholders in the second quarter through both dividends and share repurchases.
Other highlights from Target’s financial report include:
- Second quarter Adjusted EPS was $1.22—above the company’s expectations of $1.04 to $1.14.
- Target expects full-year 2015 Adjusted EPS of $4.60 to $4.75, up from $4.50 to $4.65.
- Segment EBIT was $1.3 billion in second quarter 2015, an increase of 17.5 percent from 2014.
- Second quarter EBITDA and EBIT margin rates were 10.9 percent and 7.7 percent, respectively.
Keep watching AndNowUKnow to see the future of Target’s fresh ventures.