First quarter comparable digital channel sales of Target Corporation grew 42 per cent, on top of 28 per cent last year. Comparable digital sales contributed 2.1 percentage points to Target’s overall comparable sales growth. In the first quarter of fiscal 2019, the comparable sales of Target grew 4.8 per cent on traffic growth of 4.3 per cent. Total revenue of $17.6 bn increased 5.0 per cent from $16.8 bn last year, reflecting sales growth of 5.1 per cent combined with a 0.5 per cent increase in other revenue.
The company reported Gaap earnings per share (EPS) from continuing operations of $1.53 in first quarter 2019, up 15.1 per cent from $1.33 in first quarter 2018. First quarter adjusted EPS were $1.53, up 15.9 per cent from $1.32 in first quarter 2018. “Target had an outstanding first quarter, as our team delivered a great experience for our guests and drove strong growth in traffic, comparable sales, operating income and earnings per share,” said Brian Cornell, Chairman and CEO of Target Corporation.
“Over the last two years we have made important investments to build a durable operating and financial model that drives consumer relevance and sustainable growth. Target’s first quarter performance and market-share gains demonstrate that the model is working. Throughout this year, we will continue to extend the reach of our same-day fulfillment options, strengthen our portfolio of owned and exclusive brands, remodel and open more stores and invest in our team. We’re confident that we’re well-positioned to deliver strong financial performance in 2019 and beyond,” explained Cornell.
Target expects second quarter comparable sales growth in the low- to mid-single digit range, mid-single digit growth in operating income dollars and both Gaap EPS from continuing operations and adjusted EPS of $1.52 to $1.72.
For full-year 2019, Target continues to expect a low- to mid-single digit increase in comparable sales, a mid-single digit increase in operating income, and both Gaap EPS from continuing operations and adjusted EPS of $5.75 to $6.05. Second quarter and full-year 2019 Gaap EPS from continuing operations may include the impact of certain discrete items which will be excluded in calculating adjusted EPS.