Target Corp.
TGT -2.90%
reported an increase in sales in the second quarter as more people returned to stores and online spending decreased compared to last summer when the Covid-19 pandemic changed shopping habits.
The retailer said comparable sales, which include in-store and online purchases, were up 8.9% year over year for the quarter, when they were up 24.3% because of the People had stocked up on groceries and many other retail chains were temporarily closed.
Most of the growth in the last quarter was driven by purchases of clothing, groceries and other items in the chain’s stores. Pedestrian traffic increased 12.7% in the quarter. Digital sales rose 10% after nearly tripling in Q2 2020.
“We believe America still loves business, and the traffic we see shows us that business continues to be a very play an important role, ”said Chief Executive
Brian Cornell
said on a conference call.
The report comes a day after the larger rival
Walmart Inc.
WMT -0.03%
reported strong sales in stores and visitor numbers. The results of both chains – selling groceries, adding roadside services, and staying open during the pandemic – had little impact on the recent surge in Covid-19 cases in the US.
Target’s quarterly sales and profits exceeded that Wall Street expectations and projected comparable sales for the second half of the fiscal year near the high end of its previous forecast.
Target executives said during the conference call that the proliferation of the Delta variant has not yet resulted in changes in consumer behavior , but they are closely monitoring the situation. « The second half of the year is likely to remain volatile, especially given the uncertainty caused by the Delta variant, » said Cornell.
Target has announced that it will work with vendors and transportation partners to reduce volatility in the global supply chain Avoid the mess that messed up ocean freight and increased the cost of products like toys ahead of the Christmas season.
“Our stocks are well over 2 billion compared to the previous year
Michael Fiddelke
said during the conference call.
Consumer spending spiked earlier this year as Covid-19 restrictions were relaxed and more people were vaccinated, but spending cooled off in July. Retail sales excluding cars were down 0.4% for the month from June, according to the Commerce Department. Sales declined in categories such as clothing, furniture and sporting goods.
Target reported sales of $ 25.2 billion for the July quarter, up 9.5% year over year. The company reported net income of $ 1.8 billion, up from $ 1.7 billion the previous year. The company said it had adjusted earnings per share of $ 3.64 for the last quarter, beating Wall Street’s estimate of $ 3.51 per share.
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