Target Corp. saw a sales uptick in the second quarter – but it’s still approaching the future cautiously.
For the three months ending June 30, total revenues of $25.5 billion were up 2.7 percent over last year. Operating income jumped 36.6 percent to $1.6 billion.
While Target “believes its full-year guidance range of a 0 to 2 percent increase in its comparable sales remains appropriate, it now believes the increase will more likely be in the lower half of that range,” the company said in a statement. Conversely, the retailer raised its guidance on adjusted earnings per share for the full year, expecting $9 to $9.70 versus the prior estimate of $8.60 to $9.60.
Before trading began, Target’s stock price were relatively flat at $144.33.
“We also saw improving trends across our discretionary categories, most notably in apparel, and we’re seeing continued strength in beauty,” said Brian Cornell, chair and chief executive officer, Target Corp., in a statement. “Looking ahead, even as we maintain the measured outlook that has served us well, we are focused on building on this positive momentum by executing our strategy and providing the unique combination of newness and value that consumers can only find at Target.”
Apparel, for example, saw comparable sales grow 3 percent in the quarter, while beauty notched high-single digit gains.
Operating income margin, 6.4 percent, was up 160 basis points compared to the prior year. Adjusted earnings per share of $2.57 marked a 40 percent increase year-over-year.
