Increased Traffic at Target Generates Strong Q2 Results
Target’s emphasis and action on value also lifted stores’ outcomes in the second quarter. According to the mass merchant, the move to lower prices on 5,000 frequently-purchased items led to higher traffic and unit volume and the midsummer sales event, Target Circle Week, resulted in high engagement across all categories. More than two million new Target Circle members signed up in the second quarter.
Leaders struck a pragmatic tone for the future. “Looking ahead, even as we maintain the measured outlook that has served us well, we are focused on building on this positive momentum by executing our strategy and providing the unique combination of newness and value that consumers can only find at Target,” said Cornell.
For the third quarter, Target foresees a 0 to 0.2% increase in comp sales and an adjusted EPS between $2.10 and $2.40. For the full-year, the retailer expects sales comps to come in on the lower half of the 0 to 2% estimate. “However, based on strong profit performance in the front half of the year, the company now expects full-year GAAP and adjusted EPS of $9.00 to $9.70, up from the prior range of $8.60 to $9.60,” the company’s financial report noted.
Target reported that it is on track to invest $3 billion to $4 billion in its business this year and opened 10 new stores and three new supply chain facilities so far in 2024. More than 50 remodels are in the works.
Minneapolis-based Target Corp. is No. 7 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America, with nearly 2,000 locations. PG also included the company on its Retailers of the Century list.