Target Q2 sales earnings and revenues beat expectations

US retailer Target reported sales growth in every merchandise category on Wednesday despite tough comparatives stemming from 2020's pandemic-fueled buying spree.

Target posted earnings per share of $3.64 each for the second quarter, ahead of the $3.49 expected by analysts, while revenues rose 9.5% to $25.16bn and also beat expectations for a print of $25.08bn.

Net income jumped from $1.7bn a year ago to $1.82bn as apparel sales grew at a double-digit clip, while essentials and beauty sales both advanced in the high single-digits.

Same-store sales were up 8.7%, while digital comparable sales grew 10% year-on-year and sales across Target's same-day services surged 55%.

Looking forward, Target stated it now expects to witness comparable sales rise the high single-digits during the second half of 2021 after previously anticipating a more modest single-digit growth.

The Minneapolis-based company also highlighted that its board had approved the repurchase of $15.0bn of its own stock as soon as it manages to complete its prior stock buyback plan.

As of 1305 BST, Target shares were down 2.22% in pre-market trading at $249.00 each.