Target share price hit record high today after strong second quarter

Target's share price hit an all-time high on Wednesday after the retailer exceeded profit expectations as it accelerated delivery and invested in new private labels.

The company 's profits in the second quarter jumped 17% to $ 938 million, while revenues reached $ 18.4 billion, up 3.6% from the same quarter last year. last year. Same store sales increased 3.4% to $ 18.1 billion, driven by higher customer traffic, while online sales jumped 34%.

Target earnings per share also reached $ 1.82, about 21 cents better than Wall Street analysts expected, according to a Zacks Investment Research poll.

The optimistic outlook pushed investors to rush into action, pushing the stock price up from 19% Wednesday morning to a record close to $ 102 per share.

The giant's quarterly robust quarterly publication highlights the growing strength of large retailers, who are aggressively expanding online to compete with their rival Amazon. The Walmart discount retailer last week also raised its expectations for the year after a very good quarter.

Both are taking market share at clothing chains and malls based in shopping malls such as JC Penney's, Macy's and Kohl's, who are struggling with weak sales related to lower traffic in the stores.

Target's good results contrast with those of many other retailers. More recently, GameStop on Tuesday fired more than 100 employees, including those headquartered in Grapevine, Texas, according to the Kotaku video game website. Shares of the video game retailer have fallen nearly 72% this year.

Up & # 39; to 12,000 stores could close this year, with the pace of closures well beyond 2018, according to Corseight Research.

Expanding Online Delivery and Private Label

Big box stores like Target are developing their online services, introducing new merchandise and modernizing their stores. Off-price chains like T.J. Maxx are coming out as well, resonating with buyers who love treasure hunting.

Target is investing more than $ 7 billion by 2020 to update its stores, open smaller stores in urban areas and expand online. The physical stores of the retailer remained the most powerful asset of the company, even though the battle for customers has shifted online.

Thanks to Shipt, a Target delivery service purchased in 2017, the retailer allows customers to retrieve their orders online. Customers can also get products delivered to their home in a few hours from a nearby target. Items purchased at a store can be delivered to homes in a number of cities, due to Target's massive footprint.

The company said that sales via Shipt, as well as in-store and in-store pickups, had more than doubled from last year and had accounted for nearly three-quarters of the 34 percent increase in sales. line.

Meanwhile, Target earlier this week said that it was expand private label products he offers in his stores a game to stimulate sales of groceries. The retailer has announced that 650 products under the "Good and Gather" brand will appear on store shelves starting September 15th. The selection will be extended to 2,000 products by the end of next year.