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Target Surpasses Q2 Expectations with EPS of $2.57, Stock Surges 12%, Raises Profit Forecast

Aug 21, 2024, 11:46 AM

Target Corporation reported strong second-quarter earnings for 2024, surpassing Wall Street expectations with an EPS of $2.57, compared to the forecasted $2.19. The retailer experienced a 2% increase in comparable sales, driven by a 3% rise in store traffic and an 8.7% boost in digital sales. This marks the first time in a year that Target's comparable sales have increased, aided by successful promotional events such as Circle Week and strategic price cuts on essential items. Net income rose by 42.7%, and the gross margin reached 28.9%. As a result, Target raised its annual profit forecast, citing improved discretionary spending and continued strength in categories like apparel and beauty. Despite these gains, Target maintained a cautious outlook for the remainder of the year, planning for Q3 comparable sales growth in the 0% to 2% range. The company's stock surged 12% in pre-market trading following the announcement. Target's market cap stands at 76.58 billion USD.