Target announces its results for the second quarter of fiscal year 2019

Target's profit for the second quarter surged 17%, exceeding Wall Street's estimates and prompting the company to raise its outlook for the rest of the year, the company said on Wednesday.

Sales in the company's stores that have been open for at least a year increased by 3.4% in the second quarter, also exceeding expectations. Its shares jumped 13% in pre-market trading.

Chief Executive Officer Brian Cornell said the company had "outstanding performance" in the first half of 2019, giving it the "confidence" it needed to boost expectations.

"By attracting customers through an irresistible assortment, a suite of convenience-driven fulfillment options, competitive pricing and a pleasurable shopping experience, we're increasing the relevance of Target and deepen the relationship between our customers and our brand, "Cornell said in a statement. announcing the results of the profits.

Here's what Target said for the second quarter of fiscal year ended Aug. 3, compared to what analysts were waiting for, from Refinitiv data:

• Earnings per share: 1.82 USD vs. 1.62 USD expected
• Turnover: 18.42 billion dollars against 18.34 billion dollars planned
• Same store sales: up 3.4% compared to expected growth of 2.9%

Net income reached $ 938 million, or $ 1.82 per share, compared to $ 799 million, or $ 1.49 per share, a year ago. That was 20 cents better than expected for a $ 1.62 earnings per share, based on Refinitiv data.

Total revenues increased 3.6% to $ 18.42 billion from $ 17.78 billion a year ago, exceeding estimates by $ 18.34 billion.

Sales in Target stores have been open for at least 12 months and its website has grown 3.4%, exceeding expectations for growth of 2.9%. A year ago, same-store sales increased 6.5%. Target said traffic had increased 2.4% in the last quarter. At the same time, digital sales increased 34%, down from a 42% increase in the first quarter.

Like Walmart, Target is expected to record a slight increase in sales during the first 48-hour edition of Prime Day, organized by Amazon in early July. For the full year, Target now calls for adjusted earnings per share to be in the range of $ 5.90 to $ 6.20, up from $ 5.75 in the prior year. $ 6.05.

"Traffic and sales continue to grow," Cornell said.

Target's report follows that of its biggest rival, Walmart, who announced last week a profit above expectations and raised its outlook for the year. This is despite the current threat of additional tariffs coming into effect in the United States. trade war with China.

Analysts are largely expecting Target to continue to post comparable sales, while other retailers, such as department store chains, are struggling to attract traffic. Target also experienced a registry failure in the last quarter, but this was not enough to weigh on sales.

Target's report follows that of its big rival, Walmart, who had released a report higher than expected last week and improved its outlook for the year. It is despite the continuing threat that additional tariffs come into effect in the context of the US trade war against China.

Analysts are largely expecting Target to continue to post comparable sales, while other retailers, such as department store chains, are struggling to attract traffic. Although Target had a record-breaking record in the last quarter, which may have a slight negative impact on its same-store sales, its traffic is expected to increase this quarter.

This week, Target has announced the launch of a new line of groceries, dubbed Good & Gather, which is its largest private label initiative to date. The retailer has invested heavily in incubating its own brands. He has also invested in the redevelopment of stores, the opening of small-format sites in major subways such as New York and the roll-out of curbside recycling for online orders.

Target stocks, with a market capitalization of $ 44.2 billion, grew by more than 30% this year.