This morning, Target announced our first quarter 2022 earnings results. See the full results and read on for a snapshot of the highlights.
Target Q1 2022 Highlights
3.3% increase in Comparable Sales on top of nearly 23% in Q1 2021.
3.4% increase in Store Comparable Sales on top of 18% in Q1 2021.
3.2% increase in Digital Comparable Sales on top of 50% in Q1 2021.
$2.16 GAAP EPS.
$2.19 Adjusted EPS.
Growth on top of extraordinary growth: Target’s business continued to grow, showing the relevance, trust and loyalty we’ve built with our guests. Traffic increased 3.9% in Q1. Since 2019, Q1 sales grew more than 40%, just over $7.4 billion. About $4.1 billion came from store sales and about $3.3 billion came from digital sales, with digital sales expanding more than 260% during that timeframe. A pie chart illustrates the makeup of stores and digital sales.
Offering even more of what guests love: Guests continued to turn to Target, relying on us for our broad assortment, ease, convenience and value.
Ease and convenience with our shopping experiences: Stores fulfilled more than 95% of our total sales, physical and digital combined. We opened 5 new stores and 3 sortation centers to serve even more guests. Our Times Square store opened in March. Same-day services grew 8% on top of 90% in 2021, outpacing Target’s overall sales growth and driving more than 50% of Q1 digital sales. Growth was led by Drive Up, which grew in the high teens.
Newness, differentiation and value across our assortment: Our multi-category assortment served a wide range of guests’ needs, with strongest performance in food & beverage, essentials and beauty. Our seasonal business excelled with strength in Valentine’s Day and Easter. Fun-seeking guests spent more on categories like toys and luggage. We expanded our Levi’s assortment to 300 more stores, offered a limited-time collection of 300+ products with Stoney Clover Lane and a curated Black History Month collection. Next up? Tabitha Brown for Target launches June 11.
Investing in the future: We continued to invest in our strategy, setting Target up to deliver even more relevant and sustainable experiences for years to come.
Building for growth: Our investment plans are building capacity, reaching new guests and enhancing our services. About 20 new supply chain buildings over the next 3 years. More than 30 new stores and more than 200 remodels planned for 2022. A photo of our new Philadelphia sortation center.
Moving forward: We advanced our Target Forward sustainability strategy, including our first net zero energy store in California that generates renewable energy and reduces emissions. Our new Target Zero curated product collection designed to reduce waste. We made progress on our Racial Equity Action and Change commitments, including a new media fund that will award more than $25 million in media to diverse-owned and founded brands by the end of 2025. And we reported progress on our diversity, equity & inclusion goals, including a significant increase in promotions for people of color (62%) and women to senior leadership positions (16%) since 2019.
Adjusted EPS is a non-GAAP financial measure most directly comparable to GAAP EPS. Adjusted EPS is reconciled to GAAP EPS in our Q1 2022 earnings release posted on our investor relations website. Statements in this document about our future investments in strategy and our Target Forward goals are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. Please see our SEC filings for risks and uncertainties that could cause Target actions to differ materially from what was expected on the date of this document, May 18, 2022.