Target Q2 exceeds expectations in terms of sales and inventory increases

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Target (TGT) outperformed estimates of market beating in its second quarter, supported by higher sales.The second quarter, boosted by higher sales, has announced the company Wednesday.

The big box retailer also strengthened its guidance for adjusted earnings per share for the full year. Target shares jumped 13% in pre-market trading and are about to open at record levels.

Here are Target's second quarter figures compared to estimates compiled by Bloomberg:

Returned: $ 18.42 billion against $ 18.25 billion planned
Adj. earnings per share: $ 1.82 to $ 1.62 expected
Sales by store: + 3.4% against + 3% expected

The retailer said that accelerating the completion the same day had boosted sales growth. Our order intake, takeover and delivery services accounted for nearly 1.5 percentage points of Target's overall comparable sales growth during the quarter. Online sales jumped 34% in the quarter.

Target also raised its estimates for the third quarter, with EPS adjusted between $ 1.04 per share and $ 1.24 per share, which is above the current expectations of $ 1.16.

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" We are really pleased with our performance in the second quarter, which demonstrates the strength of our strategy and the sustainable financial model we have built over the last few years, "said CEO Brian Cornell & nbsp;said in a statement."data-reactid =" 31 ">" We are very pleased with our second quarter performance, which demonstrates the strength of our strategy and the sustainable financial model we have built in recent years, "said CEO Brian Cornell in a statement. .

"Traffic and sales continue to grow as our PSEs reach an all-time high, driven by the strength of our team's execution and their willingness to provide services to our customers," he added. .

Target, along with its peers, is not immune from fears about US tariffs in China. Investors will pay particular attention to management's comments on the impact of the trade war on its business.

<p class = "canvas-atom web-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The big-box retailer has also strengthened its grocery store Target a announced Monday that it was & nbsp;launch of the brand of Good & amp; Collect to compete with Amazon (AMZN) and Walmart (WMT). "Data-reactid =" 34 "> The big-box retailer has also beefed up its grocery business Target announced Monday the launch of the Good & Gather grocery brand to compete with Amazon (AMZN) and Walmart (WMT).

Good & Gather's products are expected to be released on September 15th. According to Target, the brand will have about 2,000 products by 2020. Grocery sales represent about a quarter of Target's total business figure.

<p class = "canvas-atom-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "" Our customers are incredibly busy and want to have a great taste of foods that they like to feed their families, "Stephanie Lundquist, Executive Vice President and President of Food & Beverage, Targetsaid in a statement. "data-reactid =" 36 ">" Our guests are extremely busy and want delicious food to feed their families, "said Stephanie Lundquist, Executive Vice President and President of Food & Beverage, in a statement.

"This is a huge opportunity for us to help Target. Our team has been working on our most ambitious food company to date, reinventing our food brands to offer convenient and affordable options that do not detract from quality or taste, "she added.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The report of the target is followed by & nbsp;Better than expected Walmart results last week. Walmart reported a 37% increase in online sales in its last quarter, as e-commerce continued to post strong growth. "Data-reactid =" 38 "> Target's report follows Walmart's better than ever results Last week's results: Walmart reported a 37% increase in online sales in its last quarter, while e-commerce continues to grow strongly.

Target's teleconference with management is scheduled to begin at 8:00 am ET.

This post is in development. Please check again for updates.

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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Heidi Chung is a Yahoo Finance journalist. Follow her on Twitter: @heidi_chung."data-reactid =" 42 ">Heidi Chung is a Yahoo Finance journalist. Follow her on Twitter: @heidi_chung.

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<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and reddit."data-reactid =" 49 ">Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, LinkedIn, and reddit.

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