This morning, Target announced our second quarter 2020 earnings results. Click here for the full results and read on for a snapshot of the highlights.
Target Q2 2020 Financial Highlights
In this fluid and volatile environment, our durable strategy and resilient team powered Target’s ability to serve guests and deliver historic business performance.
+24.3% Comparable Sales (an all-time record)
+195% Comparable Digital Sales
+10.9% Comparable Store Sales
$3.35 GAAP EPS from continuing operations (an all-time record)
$3.38 Adjusted EPS* (an all-time record)
Digital Growth: We’ve added 10 million new digital guests in the first half of 2020.
Our safe and convenient same-day fulfilment offerings grew 273% and continue to help build trust with guests.
We saw the fastest growth in Drive Up, which grew more than 700%.
Year-over-year Target sales fulfilled by Shipt grew more than 350%
In-store pickup sales increased more than 60% in Q2. Order Pickup has been in stores for 5 years and continues to grow in popularity.
Stores Powering Sales
More than 90% of our Q2 sales growth involved our stores, whether a guest’s order was purchased at the register, put in their car or shipped from store.
Guests shopped both discretionary and frequency categories as they consolidated trips in store and online at Target.
Growth Across the Board: Guests bought home office items, video games, décor, domestics and kitchenware as families continue to transition to working, learning, and playing from home. Apparel moved from a 20% decline in Q1 to double-digit growth in Q2.
Home up 30%; Electronics up 70%; Beauty up 20%; Food & Beverage about 20%; Essentials about 20%
Good & Gather has hit $1 billion in sales less than a year since being introduced.
Target Run and Done: Traffic growth of 4.6%; Basket growth of 18.8%
Record Gains: We had $5 billion in market share gains in the first half of 2020 – surpassing all of 2019.
Striving to be America’s Safest Place to Shop
We’re deepening trust and loyalty by making the right investments in our team and guests.
Guests’ Changing Needs
Our teams have moved quickly to rethink the shopping experience as guests continue to prioritize safety.
We’ll be featuring our back-to-school assortment for an extended period this year, allowing parents to delay shopping until they have more certainty on their school district’s plans.
For Halloween we’re going big on costumes and décor as guests celebrate closer to home.
Closing stores on Thanksgiving and spreading our best-price holiday deals over a longer timeframe so our guests can be con‑dent they aren’t missing out on great savings.
Our team is our biggest differentiator, which is why we raised our minimum wage to $15 per hour in July, 20% above the U.S. industry average. We’ve committed more than $1 billion to: Paid leave; Bonuses; Back-up care; Tutoring resources; Caregiver assistance; Wellness benefits
Protecting Guests and Team
As of August 1, we’re requiring guests to wear masks or face coverings in all of our stores. We provide disposable masks to guests who do not have one.
*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 Q2 2020 earnings release posted on our investor relations website.
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