Target once again hit the bullseye when it reported second quarter earnings ahead of the opening bell Wednesday.
The retailer reported adjusted earnings of $3.38 per share, far exceeding the consensus estimate of $1.82 per share and marking an 85% increase from the same period last year. Revenue of $22.98 billion also surpassed estimates of $20.08 billion.
Catching investor interest was strong growth in same-store sales, which increased 24.3%, while digital sales rose nearly 200% from the second quarter of 2019.
"Our second quarter comparable sales growth of 24.3% is the strongest we have ever reported, which is a true testament to the resilience of our team and the durability of our business model…Our stores were the key to this unprecedented growth, with in-store comp sales growing 10.9% and stores enabling more than three-quarters of Target's digital sales, which rose nearly 200%," CEO Brian Cornell said in the earnings release.
The report followed strong results from retail competitor Walmart which also saw strong growth in e-commerce, reporting a 97% rise in digital sales Tuesday. Walmart introduced curbside pickup amid the coronavirus pandemic.
Jim Cramer said the retailers who can win at contactless pickup and delivery will be the ones that survive and thrive amid the coronavirus pandemic.
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