ANL 19.29 Decreased By ▼ -1.56 (-7.48%)
ASC 13.45 Decreased By ▼ -0.09 (-0.66%)
ASL 22.20 Decreased By ▼ -0.80 (-3.48%)
BOP 8.18 Decreased By ▼ -0.02 (-0.24%)
BYCO 7.55 Decreased By ▼ -0.26 (-3.33%)
FCCL 17.45 Decreased By ▼ -0.35 (-1.97%)
FFBL 22.10 Decreased By ▼ -0.65 (-2.86%)
FFL 15.20 Decreased By ▼ -0.30 (-1.94%)
FNEL 7.40 Increased By ▲ 0.05 (0.68%)
GGGL 17.00 Decreased By ▼ -0.83 (-4.66%)
GGL 39.30 Decreased By ▼ -0.71 (-1.77%)
HUMNL 5.76 Decreased By ▼ -0.26 (-4.32%)
JSCL 18.00 Decreased By ▼ -0.30 (-1.64%)
KAPCO 35.95 Decreased By ▼ -0.40 (-1.1%)
KEL 3.29 Decreased By ▼ -0.11 (-3.24%)
MDTL 2.50 Decreased By ▼ -0.15 (-5.66%)
MLCF 34.24 Decreased By ▼ -0.86 (-2.45%)
NETSOL 119.85 Decreased By ▼ -9.55 (-7.38%)
PACE 4.94 Increased By ▲ 0.19 (4%)
PAEL 26.53 Decreased By ▼ -0.47 (-1.74%)
PIBTL 8.71 Decreased By ▼ -0.14 (-1.58%)
POWER 7.25 Decreased By ▼ -0.20 (-2.68%)
PRL 16.97 Decreased By ▼ -0.18 (-1.05%)
PTC 9.65 Decreased By ▼ -0.36 (-3.6%)
SILK 1.50 No Change ▼ 0.00 (0%)
SNGP 45.10 Increased By ▲ 0.10 (0.22%)
TELE 17.48 Decreased By ▼ -1.41 (-7.46%)
TRG 161.00 Decreased By ▼ -1.70 (-1.04%)
UNITY 31.80 Decreased By ▼ -1.15 (-3.49%)
WTL 2.85 Decreased By ▼ -0.09 (-3.06%)
BR100 4,718 Decreased By ▼ -14.65 (-0.31%)
BR30 22,320 Decreased By ▼ -482.1 (-2.11%)
KSE100 45,074 Decreased By ▼ -223.36 (-0.49%)
KSE30 17,742 Decreased By ▼ -68.18 (-0.38%)

Coronavirus
VERY HIGH Source: covid.gov.pk
Pakistan Deaths
27,524
4224hr
Pakistan Cases
1,236,888
2,06024hr
4.58% positivity
Sindh
454,510
Punjab
427,583
Balochistan
32,837
Islamabad
104,913
KPK
172,766
Business & Finance

Target forecasts more sales growth after bumper quarter

  • Q1 results beat expectations.
  • Apparel sales surge around 60%.
  • Sees same-store sales growth through 2021.
  • Shares rise 4%.
19 May 2021

Target Corp on Wednesday posted quarterly sales that surged about 23%, raising hopes of booming demand through the year as consumers flock to stores and shop for more than just essentials.

Shares rose 4% after the retailer also forecast growth in comparable sales for the last two quarters of the year, countering Wall Street's fears of a sales drop, as it keeps pace with surging sales recorded during the pandemic's peak.

With the reopening of the economy due to vaccinations, Target, like Walmart and Macy's, said shoppers are spending more on apparel and beauty products as they prepare to socialize and travel.

"With vaccinations rolling out across the country and consumers increasingly comfortable venturing out, we've seen an enthusiastic return to in-store shopping," CEO Brian Cornell told analysts.

Target's focus in building its private-label brands, including designer dress collection and activewear line All in Motion, is paying off, with sales from the business rising 36% in the first quarter, their best growth so far.

That helped drive its overall apparel sales, which rose in the low-60% range.

Operating margin is likely to hit 8% or more this year as Target bets on the success of its private-label brands.

The executives also said the company is having no trouble in finding workers in a tight labor market, thanks to its investments, including raising minimum wage last year.

A rise in store traffic and digital sales, boosted by same-day delivery services, drove a 22.9% jump in comparable sales. Analysts were expecting a 9.93% rise, according to IBES data from Refinitiv.

"Stimulus turbo boosters will inevitably ebb, yet Target's ability to win and retain consumers during and after COVID is what should hopefully serve them well into the future," Evercore analyst Greg Melich wrote in a note.

Excluding items, Target earned $3.69 per share, beating estimates.

Comments

Comments are closed.