This morning, Target announced our second 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 Q2 2019 Same-Day Services Q2 Brand Launches
Key Results and Updates on Strategic Initiatives
Up 2.4% comparable traffic
Up 3.4% total comparable sales = Up 34% comparable digital channel sales + Up 1.5% comparable store sales
$1.82 GAAP EPS from continuing operations &Adjusted EPS* more than 20% growth
Best two-year comp sales performance in well over a decade.
2-year stack approx 10%
Q2 2019 3.4%
Q2 2018 6.5%
16.9% growth in operating income was ahead of our expectations this quarter, translating into record-high GAAP and Adjusted EPS.
Sales fulfilled via same-day services Shipt, Drive Up and Order Pickup more than doubled over the last year, and drove nearly three-quarters of our 34% digital comp.
We fulfilled nearly five million Drive Up orders in the first half of this year – more than double the amount in all of 2018.
Increased Adoption & Engagement
Same-day is bringing new guests online. Nearly 1 in 5 guests who placed a same-day order in Q2 were placing a digital order with Target for the rst time. More than three-quarters of same-day orders in Q2 were placed by a guest who previously had used a same-day service in the past three months.
Investments in stores are elevating the guest experience and allowing us to reach guests in new communities.
Continuing Remodel Program
We completed 84 remodels this quarter, and are nearly halfway to our goal of remodeling about 300 stores this year.
Opening New Small Format Stores
We opened four new small-format stores in the quarter (in East Lansing, MI; Seattle, WA; Lexington, KY; and Ocean Beach, CA), three of which opened near college campuses just in time for the Back to College season.
Q2 Brand Launches
We continue to introduce new owned and exclusive brands across the assortment.
More Than Magic
More Than Magic is Target’s rst lifestyle owned brand for girls ages 8-12 who are starting to experiment with their personal sense of style. This brand comes to life in a destination-like experience that features multiple categories and is designed to be shopped with friends.
Our limited time partnership with vineyard vines was one of the most successful in our history. Guests logged onto Target.com early in the morning on launch day, and lined up at our stores across the country to get pieces from the much-anticipated collection.
*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 2019 earnings release posted on our investor relations website.