Target reports better-than-expected Q2 earnings
Minneapolis-based Target Corp. on Wednesday reported second-quarter earnings of $1.23 per share adjusted compared to a forecast profit of $1.19 per share. In addition, the retailer stated that comparable sales increased 1.3 percent, driven by traffic growth of 2.1 percent, while comparable digital channel sales rose 32 percent.
In the second quarter, Target devoted $717 million to capital investment, paid dividends of $331 million and returned $296 million through share repurchases.
“In particular, we are pleased that second-quarter traffic increased more than 2 percent, reflecting growth in both our store and digital channels,” said Brian Cornell, chairman and CEO of Target, in a statement. “We continue to focus on our long-term strategy, as we work to transform every part of our business and build an even better Target that will thrive in this new era in retail.”
Earlier this week, Target announced that it is acquiring San Francisco-based tech startup Grand Junction, a transportation technology firm that offers same-day deliveries. Grand Junction’s software-as-a-service platform coordinates local deliveries through a network of roughly 700 carriers.
“We’ll leverage Grand Junction’s platform … to become even faster and more efficient in how we get products to our guests,” Executive Vice President Arthur Valdez, Target’s chief supply chain and logistics officer, said in a press release.