Target shares surge as retailer ups full-year guidance
US retailer Target upped its full-year profit guidance on Wednesday after turning in stronger-than-expected second-quarter results.
Target Corp.
$95.78
10:59 03/06/25
Total revenues rose 3.6% to $18.42bn, above expectations of $18.34bn, while same-store sales picked up 3.4% - topping forecasts for a 3% increase.
Target, which reported a 17% jump in quarterly earnings to $938m, or $1.82 per share, credited its solid performance to a heightened level of investment in remodelling stores and strengthening its digital business.
The Minneapolis-based retailer also highlighted that same-day fulfilment services, including order pickup, drive up and Shipt same-day delivery business, accounted for almost 1.5% of its overall same-store sales growth.
While digital sales did increase 34%, that figure was down from the 42% increase recorded during the first quarter.
As a result of the solid performance, Target raised its full-year earnings per share forecast to fall within $5.90 to $6.20, up from the $5.75 to $6.05 previously expected, seemingly shrugging off many of the tariff-related woes that had weighed heavily on other retailers.
As of 1610 BST, Target shares had shot up 18.43% to $101.32 each.