Summary
Target Corporation reported a solid first quarter for fiscal year 2019, with total revenue increasing by 5.0% to $17.63 billion, driven by a strong comparable sales growth of 4.8%. This growth was primarily fueled by a significant 42% increase in digital channel sales, which contributed 2.1 percentage points to the overall comparable sales increase, alongside a 2.7% rise in comparable store sales. The company demonstrated improved profitability, with operating income rising 9.0% to $1.14 billion and diluted earnings per share from continuing operations increasing by 15.1% to $1.53.
Financial Highlights
50 data pointsBeta
Financial Statements
Beta
| Revenue | $17.63B |
| Cost of Revenue | $12.25B |
| Gross Profit | $5.38B |
| SG&A Expenses | $3.66B |
| Operating Income | $1.14B |
| Interest Expense | $126.00M |
| Net Income | $795.00M |
| EPS (Basic) | $1.54 |
| EPS (Diluted) | $1.53 |
| Shares Outstanding (Basic) | 515.70M |
| Shares Outstanding (Diluted) | 519.50M |
Key Highlights
- 1Total revenue for the first quarter of fiscal year 2019 grew 5.0% to $17.63 billion compared to the prior year.
- 2Comparable sales increased by a robust 4.8%, driven by a 4.3% rise in transactions.
- 3Digital channel sales saw a substantial surge of 42%, contributing significantly to overall comparable sales growth.
- 4Operating income increased by 9.0% to $1.14 billion, indicating improved operational efficiency.
- 5Diluted earnings per share from continuing operations rose 15.1% to $1.53, demonstrating enhanced profitability on a per-share basis.
- 6The company repurchased $277 million of its stock in the first quarter, reflecting a commitment to returning capital to shareholders.
- 7REDcard penetration remained strong at 23.5%, indicating continued guest loyalty and engagement.
Frequently Asked Questions
Target reported a 5.0% increase in total revenue to $17.63 billion. Comparable sales grew by 4.8%, with digital channel sales up 42% and comparable store sales up 2.7%.
Digital channel sales were a significant growth driver, increasing by 42% and contributing 2.1 percentage points to the total comparable sales growth of 4.8%. This highlights Target's successful investment and execution in its e-commerce and omni-channel strategies.
Profitability improved, with operating income increasing by 9.0% to $1.14 billion. Diluted earnings per share from continuing operations saw a substantial increase of 15.1% to $1.53, indicating strong bottom-line performance.
Target prioritizes reinvesting in the business to drive profitable growth, maintaining and growing its quarterly dividend, and returning excess cash to shareholders through share repurchases, while adhering to credit rating goals.