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10-QPeriod: Q1 FY2020

TARGET CORP Quarterly Report for Q1 Ended May 4, 2019

Filed May 31, 2019For Securities:TGT

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 Statements
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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.

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