This morning, Target announced our first quarter 2020 earnings results. Click here for the full results and read on for a snapshot of how our team served guests and communities during a quarter unlike any other.
Target Q1 2020
Financial Highlights
Our durable strategy and flexible team drove strong results in the face of extreme volatility
Our durable strategy and flexible team drove strong results in the face of extreme volatility
+10.8% Comparable Sales
+0.9% Comparable Store Sales
+141% Comparable Digital Sales
$0.56 GAAP EPS from continuing operations
$0.59 Adjusted EPS*
Coronavirus Response
Our $500 million commitment of extended benefits for team members and safety measures distinguishes Target as a safe and easy place for our guests to shop
Our $500 million commitment of extended benefits for team members and safety measures distinguishes Target as a safe and easy place for our guests to shop
Implementing Safety Measures
Adapted stores for social distancing
New, rigorous in-store cleaning routines
Quantity limits on in-demand items
Installed Plexiglass partitions at checklanes
Metering the number of guests in our stores at any one time
Providing team members with high quality, disposable face masks and gloves to wear at work
Introduced dedicated shopping time for our most vulnerable guests
Supporting Our Team
Invested hundreds of millions of dollars in extra pay, bonuses and benefits
Making free back-up care available for all team members
Offering 30-day paid leave for team members who are vulnerable, over 65 or pregnant
Rolled out a health checklist for team members to perform before coming to work
Providing free thermometers to team members who need them
Introduced dedicated team shopping hours
Digital Growth
With our stores at the center of our fulfillment operations, and our nimble and flexible team, we were able to meet record digital demand
With our stores at the center of our fulfillment operations, and our nimble and flexible team, we were able to meet record digital demand
Stores as hubs
Stores fulfilled nearly 80% of Target’s Q1 digital comparable sales
95% of orders were ready to be picked up or shipped on time
Digital Volume
Digital comparable sales accelerated every month in the quarter
On an average day in April, we fulfilled more items and orders than last year’s Cyber Monday
Q1 Digital Sales Up 141%
Same-Day Services
Q1 Drive-Up units were higher than all of 2019
Of the millions of guests who used Drive Up, 40% were new to the service
Shipt doubled its shopper community across the country and Target sales fulfilled by Shipt were up more than 300%
Q1 Same-Day Services Up 278%
Meeting Guest Needs
Our multi-category portfolio served dramatically shifting guest shopping patterns throughout the quarter
Our multi-category portfolio served dramatically shifting guest shopping patterns throughout the quarter
February: Early February, relatively normal mix of sales; End of February, traffic and sales accelerated, particularly in our stores
We saw healthy market-share gains across all 5 of our core merchandise categories
March: Mid-March, guests focused shopping on Food & Beverage and Household Essentials; Sheltering-in-place across the country sparked a dramatic increase in digital traffic and sales
Demand rose for products oriented around staying at home: home oce products, video games, kitchenware
April: Mid-April, store traffic and sales rapidly increased, including a surge in discretionary categories like Apparel
Throughout April, digital growth continued at unprecedented rates between 200–300%
*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 2020 earnings release posted on our investor relations website.
