Target says its profit came in 80.3% higher in the fiscal Q2

Target Corp (NYSE: TGT) said on Wednesday that its profit in the fiscal second quarter jumped to £1.30 billion that marks an unprecedented 80.3% increase on the back of robust comparable-store sales. In other news from the U.S. retail sector, Lowe’s also published its quarterly figures on Wednesday.

Shares of the company were reported about 8% up in premarket trading on Wednesday. The stock jumped another 4% on market open. At the time of writing, the £58.73 billion company that has a market cap of 28.55 is more than 20% in the stock market as compared to its per-share price at the start of 2020. Looking for help in choosing an online stock broker? Here’s a fair comparison of a top few to get you started.

Target’s Q2 financial results versus analysts’ estimates

According to Refinitiv, experts had forecast the company to print £15.32 billion in revenue in the second quarter. In terms of earnings per share (EPS), they had estimated £1.24 per share. In its report on Wednesday, Target topped both estimates posting a higher £17.54 billion of revenue and £2.58 of adjusted earnings per share in Q2.

In terms of same-store sales, the American retail corporation registered a 24.3% growth in the recent quarter versus a much lower 7.6% expected. Target’s comparable-store sales touched a record-high in the fiscal Q2. The retailer partnered with Walmart last month to tackle bag waste.

As per the U.S. firm, electronics sales came in the strongest for the second quarter noting an over 70% growth on an annualised basis. Its beauty segment, on the other hand, saw a 20% sales growth in Q2 while home was up by 30%. Essentials, and food and beverage, each registered a 20% year over year increase in sales in the recent quarter. Lastly, Apparel sales also caught momentum after sliding 20% in the prior quarter.

Other prominent figures in Target’s earnings report

Other prominent figures in Target’s earnings report on Wednesday include a 700% increase in sales via its curbside pickup service and a 350% increase from Shipt (online delivery service).

As per the Minneapolis-based company, its digital segment added 10 million new customers in the first six months of fiscal 2020. Consequently, Target’s market share got a massive £3.81 billion boost in the first half. On a year over year basis, its revenue was 24.7% higher in Q2.

Despite an upbeat quarterly performance, Target refrained from giving its financial guidance for the full year on Wednesday due to the Coronavirus pandemic.