American fashion retailer Target has posted 8.9 per cent growth in comparable sales in its second quarter that ended 31 July.
The retailer said on Wednesday (18 August) that its comparable sales growth was entirely fuelled by traffic.
While the comparable sales surged by 8.7 per cent during the quarter, the digital comp sales jumped by 10 per cent. Notably, it was 24.3 per cent comparable sales growth in the second quarter of 2020.
In this regard, Brian Cornell, Chairman and CEO, Target, said that Q2 this year saw the retailer continue with an impressive performance and grow on both top and bottom lines.
He further substantiated that Target, in last two years, witnessed its Q2 total sales shoot up by over 36 per cent (over US $ 6.6 billion).
Another notable aspect was that the back-to-school spending has started strong – a positive result that Target hopes to continue with all through the third quarter.
After an impressive second quarter, the retailer has now increased its guidance for the remaining year, and expects comparable sales to show high single digit growth. It also expects the operating income margin to be 8 per cent or more this year.
Target, which is, reportedly, the 8th largest retailer in the US, generated US $ 93.561 billion in 2021.