US retail giant Target has reported total revenue of $25.45bn in the second quarter (Q2) of fiscal 2024 (FY24), up 2.7% from $24.77bn in Q2 FY23.
The retailer delivered a 2.6% increase in total sales and a 10.8% increase in other revenue.
Its comparable sales increased 2.0% in Q2 FY24, driven by 0.7% growth in comparable store sales increase and an 8.7% increase in comparable digital sales.
During the quarter ending 3 August 2024, Target's operating income was $1.63bn, up 36.6% compared to $1.19bn in Q2 FY23.
The retailer’s net earnings were $1.19bn in Q2 FY24, up 42.7% from $835m in the same quarter of the previous year.
Its diluted earnings per share (EPS) for the quarter were $2.57, compared with $1.80 in Q2 FY23.
Target's delivered operating income margin rate was 6.4% in Q2 FY24, compared with 4.8% in Q2 FY23, while gross margin rate was 28.9%.
Target chair and chief executive officer Brian Cornell said: "We made a commitment to get back to growth in the second quarter, and the team delivered, all while expanding operating margins and growing EPS by more than 40% compared to last year.
“Importantly, our growth was driven entirely by traffic in stores and our digital channels, with double-digit growth in our same-day delivery services.
"We also saw improving trends across our discretionary categories, most notably in apparel, and we're seeing continued strength in beauty. Looking ahead, even as we maintain the measured outlook that has served us well, we are focused on building on this positive momentum by executing our strategy and providing the unique combination of newness and value that consumers can only find at Target."
In the third quarter of the fiscal year, Target expects comparable sales to increase by up to 2%, with GAAP [generally accepted accounting principles] and adjusted EPS of $2.10 to $2.40.
For the full year, the retailer anticipates comparable sales to increase in the lower half of its guidance of up to 2%.
The company raised its full-year GAAP and adjusted EPS to between $9 and $9.70, up from the previous range of $8.60 to $9.60.
In May 2024, Target announced that it would lower everyday regular prices on 5,000 frequently shopped products across its offering.
