Home Gives Target Q2 Sales A Boost

Second quarter comparable sales growth at Target was up 2.4%, in line with expectations, as the company reported same-store sales growth of between 4% and 5% in its home department.

According to the company, second quarter sales increased 2.8% to $17.4 billion, compared to $16.9 billion in last year's second quarter, with digital channel sales up 30%. Earnings per share for the quarter were $1.22, up 20.6%. Net earnings for the second quarter ended August 1 was reported at $753 million compared to $234 million in the previous second quarter.

“While the momentum in our financial results is encouraging, we have much more to accomplish,” said Brian Cornell, chairman and CEO of Target. “Looking ahead, we are focused on making further progress against our strategic priorities and are committed to improving operations as we move through the important back-to-school, back-to-college and holiday seasons.”

The company also reported that Target Canada Co. completed a court-approved real estate sales process during second quarter 2015. Consistent with expectations, after-tax losses from discontinued operations were $20 million in the second quarter of 2015, compared with $157 million last year.

In third quarter 2015, Target expects adjusted earnings per share of $0.79 to $0.89 compared with $0.79 in third quarter 2014. For the full-year 2015, the retailer expects adjusted EPS of $4.60 to $4.75, compared with prior guidance of $4.50 to $4.65.