All the estimates and predictions made by analysts and financial experts were blown away on Wednesday (19 August) after Target posted a whopping 80.3 per cent growth (US $ 1.7 billion) in profits in Q2.
The total revenue shot up by 24 per cent (US $ 23 billion) in 3 months ending 1 August, beating analysts’ prediction of US $ 20.09 billion.
The same-store sales too rose by 10.9 per cent.
Numbers have never been as outstanding for the fashion retailer in its almost 6-decade-old history.
To add to these wonderful sales and profit figures, the e-commerce sales too rose by 3 times from what it was last year.
The retailer also saw an addition of 10 million new online customers in the first half of the year, with the numbers evenly divided across both quarters.
Apparel sales, in particular, saw double-digit growth in the second quarter, which is noteworthy considering the weak position the category has been in all through the year.
Notably, the first quarter had witnessed a fall of 20 per cent in apparel sales.
Target, which also focuses on kids’ apparels and accessories, said that it will feature back-to-school assortment for an extended duration this year so that parents can get good time to shop for school apparels.
It’s been good so far for Target, but going forward the retailer believes it has to be flexible and adaptable to combat the uncertainties and apprehensions that will accompany the retail sector in the new normal.
