May 22, 2019
This morning, Target announced our first quarter 2019 earnings results. Click here for the full results and see below for a snapshot of how we're continuing to move our strategy forward.
TARGET EARNINGS Q1 2019
Key Results and Updates on Strategic Initiatives
GUIDED: Comp sales: low-to-mid single digit increase
DELIVERED: +4.8% comparable sales; 8th consecutive quarter of comp sales growth
GUIDED: Operating income: mid single digit increase
DELIVERED: +9% Operating income
GUIDED: Adjusted EPS: $1.32 to $1.52 GAAP EPS: $1.32 to $1.52
DELIVERED: $1.53 Adjusted EPS* and $1.53 GAAP EPS from continuing operations; up more than 15 percent
We’ve built a durable model that drives consumer relevance and sustainable growth, designed to translate top line growth to bottom line performance and propel Target forward. Our Q1 performance–including 4.3% traffic growth–demonstrates this model is working.
Same day services
Guests tell us when speed counts nothing beats same-day.
Redefining Our Digital Business
Our wide array of options for guests to receive digital orders in as soon as one hour nationwide drove more than half of our 42% digital comp
Drive Up – in minutes: At 1,250 stores, guests can expect their orders within minutes of pulling into the parking lot.
Order Pickup – under 1 hour: At every store, 95% of orders are ready for in-store pickup within an hour of the guest placing an order.
Same day delivery, shopped by Shipt – within hours: Guests receive orders delivered straight to their door by a Shipt shopper in as little as one hour from 1,500 stores.
Same-day fulfillment options drove more than 25% of our total Q1 comparable sales growth. Overall, our strategy of using stores to fulfill digital orders accounts for 80% of our digital volume while driving down costs and growing our most profitable digital sales.
Q1 comp sales growth: 25% driven by same-day fulfillment options
Our 1,800+ stores are located within 10 miles of three-quarters of all Americans.
Remodels: We completed 53 remodels across the country in the first quarter, and we’re on track to deliver approximately 300 remodels this year. Guests continue to respond by shopping remodeled stores more often, driving incremental traffic and sales
Small formats: We opened 7 small-format stores in important growth markets such as NY, LA and DC, and in new communities where Target can serve new guests, including our first store in Santa Barbara.
We are growing market share in every major category, outpacing the industry.
Intimates reinvention: We are taking an entirely new approach to the intimates and sleepwear business at Target, to be even more inclusive, inviting and easier to shop. In Q1 we introduced three new brands: Auden, Stars Above and Colsie.
We introduced five new owned brands during Q1.
Everspring: Developed by Target’s internal design team, Everspring products are made from plants and other renewable materials, as well as postconsumer recycled paper.
Sun Squad: Sun Squad is our seasonal owned brand to help guests celebrate the pure joy of summer.
*Adjusted EPS is a non-GAAP financial measure most directly comparable to GAAP EPS from continuing operations. Adjusted EPS is reconciled to GAAP EPS from continuing operations in our Q1 2019 earnings release posted on our investor relations website.
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