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Target $TGT +3.11% posted first-quarter net sales of $25.4 billion on Wednesday, a 6.7% increase from a year ago, and raised its full-year sales outlook after results came in well above expectations.
The 5.6% comparable-sales gain marked the end of four consecutive quarters in negative territory, the company said. Store-originated comparable sales contributed a 4.7% gain, while digital comparable sales added 8.9%, with same-day delivery through Target Circle 360 cited as a key driver. Customer traffic grew 4.4% compared with the same period last year.
At $1.71, adjusted earnings per share represented a 32% jump over the prior year's adjusted figure of $1.30. Wall Street had penciled in $1.46 per share and revenue of $24.64 billion, according to CNBC, making both figures a clear beat.
Net sales grew across all six of Target's core merchandising categories. Revenue from sources outside merchandise — including the Roundel advertising business, Target Circle 360 membership fees, and the Target+ marketplace — climbed close to 25%. Same-day delivery, powered by Target Circle 360, grew more than 27%.
