August 18, 2021
(Reuters)-Target Corp outperformed analysts’ estimates of same-store sales on Wednesday, despite fewer online purchases compared to pandemic highs.
Second-quarter digital comparison sales increased by just 10%, compared to a 195% increase in the year-ago quarter when customers relied on Target’s same-day delivery services such as drive-ups, shipments, and in-store pickup. Shopping needs during a pandemic. Online sales increased by 50% in the first quarter.
According to Refinitiv’s IBES data, comparable total sales for the three months ending July 31 increased by 8.9%, surpassing historical expectations of 8.68%.
Target shares, which also announced a new $ 15 billion share buyback program, fell 1.3% in pre-market transactions and increased about 45% this year.
Target results highlight a recovery in store purchases and a return to pre-pandemic behavior in the United States, as vaccinations and relaxed restrictions encourage more people to leave.
Brian Cornell, Chief Executive Officer, said:
Wal-Mart’s quarterly report on Tuesday also showed that more people are returning to the store and slowing online sales after a record year.
Target’s second-quarter sales increased across key categories, but apparel in particular benefited from the early start of the Biden administration’s pre-child tax credit to the new semester.
Even if supply chain disruptions, rising labor costs and the rapidly expanding Delta variant could hurt economic recovery, this boost is expected to continue this quarter.
Cornell University added that the second half of this year is likely to remain volatile, especially due to the uncertainties caused by Delta variants.
Total revenue was up 9.5% to $ 25.16 billion, but excluding items, the company generated $ 3.64 per share, above expectations of $ 3.49.
(Report by Aishwarya Venugopal in Bangalore, edited by Sriraj Kalluvila)
When the shopper returns to the store, the target sales are exceeded.Online purchase slows down
Source link When the shopper returns to the store, the target sales are exceeded.Online purchase slows down