This morning, Target announced its second quarter 2017 earnings results. Click here for the full results and see below for a snapshot of how Target is continuing to move its strategy forward.
TARGET EARNINGS Q2 2017
Key Results and Updates on Strategic Initiatives
Traffic +2.1%
Adjusted EPS* $1.23
Comparable sales 1.3%
Comparable digital channel sales +32%
GAAP EPS from continuing operations $1.22
Stores
This year, we’ll remodel more than 100 stores and nearly double the number of small-format stores.
Campus Small Formats: In July, Target opened nine new small-format stores in communities across the country, including college stores near USC, UC-Irvine, UNC Chapel Hill and University of Cincinnati. 15 new small-format locations are announced for 2018 … with more to come!
Remodels: We remodeled 42 stores in Q2 and are well on our way to transform 100 this year. What’s next: We’ve increased the number of stores we’ll remodel in 2018 to more than 300, up from our initial plan of 250 remodels.
Digital & fulfillment
We’ve made significant investments to increase our speed, reliability and reach as we meet guests’ needs wherever they choose to shop with Target.
Drive Up: We’re testing a new service that brings Order Pickup items right to guests’ cars. Today, it’s a team-member-only test, but we plan to expand to Minneapolis-area guests in the coming months.
Target Restock: The Target Restock test has expanded to Dallas-Fort Worth and Denver (coming soon to seven more cities!) and is now open to all guests, not just REDcard-holders. Also new: We’ve added 5,000 more items + Saturday delivery
What’s next: Our acquisition of Grand Junction will accelerate Target’s efforts to transform our supply chain by enhancing speed, efficiency and service in last mile delivery. Thanks to foundational efforts to remove friction and pain points from the digital experience, we have seen a meaningful decline in the rate of Guest Relations activity related to digital issues.
Differentiated assortment
Exclusive brands are a key differentiator for Target and we’ve had great success introducing new brands over the past year.
Cloud Island, our exclusive Baby brand with nearly 500 nursery décor, bedding, bath and layette products, has generated double digit comps since launching in May.
What’s next: During the quarter, we announced four new brands that will debut this fall across Home and Apparel – part of our plans to introduce more than a dozen new brands over the next 18 months.
Cat & Jack is now a $2 billion brand, just over a year after launch.
*Adjusted EPS is a non-GAAP financial measure most directly comparable to GAAP EPS from continuing operations. Adjusted EPS is reconciled to GAAP EPSfrom continuing operations in our Q2 2017 earnings release posted on our investor relations website.
