Target’s share price recently broke through $100 per share, a record high. The company reported its second-quarter earnings, which made the bears scream and attracted a large number of bulls.
Editor’s note: This article is from WeChat public number “US stock research society” (ID: meigushe), < /a>Author | Leo Sun, Motley Fool.
Target’s share price broke through $100 per share.
Tajit has been a stock that has caused disagreement in recent years. Bulls claim that their size and digital growth will help them keep up with the times in the ever-changing retail market, while bearers warn that the company may still struggle to keep up with Amazon and Wal-Mart.
However, Target’s share price recently broke through $100 per share, a record high. The company reported its second-quarter earnings, which made the bears scream and attracted a large number of bulls. The company’s revenue increased 4% year-on-year to US$18.4 billion, exceeding expectations of US$100 million. Adjusted earnings per share increased 24% to US$1.82, also exceeding expectations of US$0.20.
These overall figures are impressive, but we should delve deeper into the four main reasons why Target’s second quarter report is to beat the bear market.
Strong growth compared to competitors
For many brick-and-mortar retailers, maintaining positive growth in same-store sales is a difficult task. However, Target’s compound growth rate has remained strong in the past year, and the compound growth rate of 3.4% in the second quarter easily exceeded the 3% forecast.
It is expected that the profit of the third quarter and second half of this year will also increase by 3.4%. The company attributed this growth to increased store traffic, increased purchases per shopper, and strong demand for its clothing, home, beauty and grocery products. At the end of the second quarter, the company’s “previous performance is encouraging” for back-to-school and back-to-school products.
The growth of Target’s department store also shows that its reshaping strategy is achieving results. The goal of the strategy is to transform 300 stores this year to improve decor, lighting, displays, and integrate their digital services.
The company’s strong profit growth is in stark contrast to the dismal performance of Macy’s and Penny’s, which have been flat and negative in recent quarters.
Strong digital growth
Tagit’s digital business