Target releases second quarter earnings report, online sales up 10%

Target reported its own second-quarter earnings on Wednesday, with earnings beating estimates.

Good revenue in the second quarter

According to the financial report, Target's revenue in the second quarter was $25.16 billion, up 9.5% from the same period last year, higher than the expected $24.99 billion. At the same time, Target's net income for the quarter totaled $1.82 billion, higher than $1.69 billion in the same period last year.

The financial report shows that sales of all its categories of goods have increased. Among them, clothing sales grew at a double-digit rate, followed by food and beverages (which achieved low double-digit growth); sales of necessities and beauty products grew at a high single-digit rate; and home products achieved low single-digit growth.

Based on the good performance in the second quarter, the company raised its revenue forecast for this year. For the second half of 2021, Target expects sales to grow by a high single digit. Target also expects its full-year operating income margin to reach 8% or higher.

Increase e-commerce investment and improve service capabilities

Target performed well during the lockdown , with sales growing rapidly, one reason being its increased investment in e-commerce to handle online orders.

Target's e-commerce channel sales in the second quarter of 2021 accounted for 17% of its total sales, an increase of 10% compared with the same period last year, a slightly higher growth rate than overall revenue.

Target said more than half of its customers now use same-day services to fulfill their online orders. Target's same-day services include Order Pick Up (in-store pickup), Drive Up (curbside pickup) and Shipt (on-demand delivery), and sales of same-day services have achieved a 55% compound sales growth based on last year's 270% growth rate.

Target Chief Operating Officer John Mulligan said they have been increasing the number of online products to meet consumer demand. At the same time, they are working hard to open new community stores, distribution centers and sorting centers across the country.

Target opened new sorting centers in New Jersey and near Chicago in the second quarter of this year, and plans to open two new sorting centers in October and two more after the holidays. "These new facilities will provide faster delivery services at a lower cost," Mulligan said.

Target

North American e-commerce

Financial Report