A blowout report card from Target. The big box retailer’s quarterly profit shot up almost 42% as same-store sales rocketed nearly 21% higher. Both its top and bottom lines trounced Wall Street’s expectations.
Target is one of the big winners amid the health crisis. Its investments in its online business and private label have paid off. Comparable digital sales more than doubled, driven largely by in-store pickups and same-day services such as Shipt and Drive Up.
More people visited Target’s stores, and they spent more. Compare that to its rival Walmart, which said Tuesday its foot traffic fell.
Analysts say Target is not only gaining new customers, it’s retaining them. The retailer said it has gained market share in all five of its core categories. Electronics sales jumped more than 50%.
As for the all-important holiday shopping season, the health crisis has forced retailers to bring forward their promotions. Target says many people have started to shop earlier, and it expects to see a lot of gift giving. Investors also went shopping Tuesday for Target shares, which have already gained 27% this year.