Target somewhat hit the target when it reported first quarter earnings ahead of Wednesday’s opening bell.
The retail giant reported adjusted earnings per share of 59 cents on total revenue of $19.6 billion. Comparable store sales grew 10.8%, driven primarily by 12.5% growth in the average basket. Target said it saw growth in all five of its core merchandise categories.
Most notably, digital sales grew 141% on solid increases every month in the quarter from 33% in February to 282% in April.
"Throughout the first quarter, our team and guests faced unprecedented challenges arising from the spread of COVID-19. In the face of those challenges, our team showed extraordinary resilience as guests relied on Target as a trusted resource for their families. With our stores at the center of our strategy, and a significant investment in the safety of our team and guests, our operations had the agility and flexibility needed to meet the changing needs of our business," Target CEO Brian Cornell said in the earnings release.
Target has been known among the retailers successfully navigating the coronavirus pandemic since the shutdown began in March when the retailer pledged to remain open, caring for its employees and customers.
However, the effort does not come without cost. The company said first quarter operating income margin rate was 2.4 percent in 2020 compared with 6.4 percent in 2019, primarily driven by an unfavorable category mix and increase in supply chain and digital costs as well as investments in employee benefits.
Target did not provide second-quarter or updated full year guidance.