This morning, Target announced its first quarter 2016 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 Q1 2016 Earnings
Target’s first quarter results were solid in a challenging retail environment. Our Adjusted EPS* of $1.29 was above our guidance. Our 1.2% sales comp and 23% digital sales comp show our strategy is working. Traffic increased for the sixth straight quarter with positive contributions from stores and digital channels. Signature Categories continued to outpace the overall business.
TARGET 2016 Q1 HIGHLIGHTS
Guests responded well to newness, quality and differentiation in our assortment, particularly in our Signature Categories.
KIDS HOME GROWTH = MID-TEENS
Growth in Apparel was led by Baby, Kids and Women’s Ready-to-Wear.
The successful launch of our new Pillowfort collection drove growth in Home.
#1 MARKET SHARE IN SWIM
PREMIUM SKINCARE SALES + more than 40%
NATURAL-BASED SKINCARE PRODUCTS +20%
In Beauty, cosmetics sales were strong in Q1, up high single digits and outpacing industry growth.
We’ve made great progress integrating stores and digital channels – which enables us to make faster deliveries and provide more convenience for guests.
2/3 OF DIGITAL TRAFFIC COMES FROM A MOBILE DEVICE
ORDER PICKUP: Today, approximately 90 percent of Order Pickup orders are ready in less than an hour – up nearly
10 percent from last year.
Target is a leader in mobile, with two of the top 10 retail apps.
Nearly $1 billion of our capital expenditures this year will be focused on the store experience.
By getting the fundamentals right, we will unlock tremendous potential for growth in our business.
We are seeing improvements across all merchandise categories.
We are collaborating with vendor partners to meaningfully reduce shipping windows across all merchandise categories by this fall.
27% IMPROVEMENT IN OUT OF STOCK MEASURES
*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 2016 earnings release posted on our investor relations website. ©2016 Target Brands, Inc., Target and the Bullseye are registered trademarks of Target Brands, Inc.