For the Second Quarter • Net sales increased 20.6% to $1,289.9 million from $1,069.2 million in the second quarter of fiscal 2016; • Comparable sales (sales for stores open at least 14 months and e-commerce sales) increased 11.7% compared to an increase of 14.4% in the second quarter of fiscal 2016. The 11.7% comparable sales increase was driven by 5.5% transaction growth and 6.2% growth in average ticket; • Retail comparable sales increased 8.3%, including salon comparable sales growth of 7.7%; • Salon sales increased 15.3% to $68.0 million from $59.0 million in the second quarter of fiscal 2016; • E-commerce sales grew 72.3% to $96.3 million from $55.9 million in the second quarter of fiscal 2016, representing 340 basis points of the total company comparable sales increase of 11.7%; • Gross profit as a percentage of net sales increased 40 basis points to 36.4% from 36.0% in the second quarter of fiscal 2016, due to improvements in merchandise margins and leverage in fixed store costs; Click Read More below for additional detail.
Target Corporation (NYSE: TGT) today announced that comparable sales in the combined November/December period grew 1.4 percent, on top of 5.7 percent growth in the same period last year. Comparable sales growth was driven primarily by traffic, combined with a small increase in average ticket. Comparable digital sales grew 19 percent in the November/December period, driven primarily by the Company’s same-day fulfillment services (Order Pick Up, Drive Up and Shipt), which together grew more than 50 percent from the comparable period last year.
Brian Cornell, Chairman and Chief Executive Officer of Target Corporation, said, “We faced challenges throughout November and December in key seasonal merchandise categories and our holiday sales did not meet our expectations. However, because of the durability of our business model, we are maintaining our guidance for our fourth quarter earnings per share. We also remain on track to deliver historically strong full-year results in 2019, including comparable sales growth of more than 3 percent and record-high EPS reflecting mid-teens growth compared with last year.
For the Holiday period specifically, sales results came in below our expectations as we experienced softer-than-expected performance in areas of our business that are critical during the season, including Electronics, Toys and portions of our Home assortment. Because these categories account for a much higher portion of sales during the holidays, they have a larger impact on our overall sales growth as compared to the rest of the year. At the same time, we’ve seen continued strength and market share gains in Apparel, Beauty, Essentials and Food & Beverage. And in Toys, despite approximately flat comparable sales, we continued to gain share over the holidays, according to data from the NPD group.
more at: https://investors.target.com/news-releases/news-release-details/target-reports-holiday-sales-and-maintains-eps-guidance