Target Reports First Quarter 2018 Earnings with Sales and Traffic Increasing
MINNEAPOLIS, MN - Over the last couple of years, Target has launched a number of fresh and small format stores and broadened its online grocery presence as a means to keep up with the changing retail landscape. This week, Target reported its financial earnings from the first quarter of 2018, revealing its improved sales thanks to its latest focus, but pinched spending numbers as a result.
The first quarter of 2018 was an especially busy one for Target, who completed 56 remodels, opened 7 new stores, introduced 3 new brands, launched its Drive-Up service in more than 250 stores, expanded Target Restock nationwide, and rolled out same-day delivery in more than 700 stores after its Shipt acquisition.
As a result, Target reported its first quarter 2018 financial performance included comparable sales growth of 3.0 percent and 3.7 percent traffic growth. This is a win for Target, as the numbers are showing more shoppers are visiting Target online and in stores, proving the retailer’s efforts are paying off.
“We’re very pleased that our business continued to generate strong traffic and sales growth in the first quarter, as we made significant progress in support of our long-term strategic initiatives,” said Brian Cornell, Chairman and Chief Executive Officer. “Our first quarter performance reflects the benefit of our unique multi-category portfolio…Additionally, our team is delivering excellent execution and guest service every day, and momentum in our traffic has accelerated in the second quarter.”
According to a press release, highlights from the first quarter of 2018’s financial report included the following:
- First quarter traffic growth of 3.7 percent is the strongest quarterly performance in over 10 years
- First quarter digital sales increased 28 percent, compared to 21 percent growth in the first quarter of 2017
- GAAP EPS from continuing operations were $1.33, up 9.1 percent from last year, while Adjusted EPS were $1.32, up 9.4 percent from last year
- The first quarter of 2018 saw broad market share gains across the company’s core merchandise categories
- Total revenue increased 3.4 percent, from $16.2 billion in 2017 to $16.8 billion in 2018, reflecting sales growth of 3.5 percent combined with a slight decline in other revenue
- First quarter sales growth reflected comparable sales growth of 3.0 percent combined with the contribution from non-mature stores
- The midpoint of Target’s second quarter EPS guidance range is approximately 15 percent higher than second quarter 2017 GAAP EPS from continuing operations of $1.21 and Adjusted EPS of $1.22
For the full financial report, click here.
What other developments does Target have up its sleeve to continue its forward momentum into the rest of the year? Keep checking back with AndNowUKnow for the latest.