1. News
May 20, 2021

Target reports 23% increase in first-quarter sales

Target has reported strong first-quarter results, with sales increasing by almost 22.9%.

US-based retail chain Target has reported that its comparable sales grew by almost 22.9% in the first quarter of the year, compared to 10.8% growth last year.

The retailer’s same-day services, including Order Pickup, Drive Up and Shipt, rose to more than 90% during the period, with Drive Up sales increasing by 123%.

Target’s retail store sales grew by 18.0%, while online sales rose by 50%.

The company’s total revenue grew by 23.4% to $24.2bn in the quarter compared with last year, and its operating income was up by 407% to $2.4bn from $0.5bn last year.

The increase was led by total sales growth of 23.3% and 30.4% growth from other revenue.

The company’s operating income margin rate was 9.8% in the quarter, compared with 2.4% last year.

Target chairman and CEO Brian Cornell said: “Our performance in the first quarter was outstanding on every measure and showcased the power of putting our stores at the centre of our strategy.

“Store comp sales grew by 18.0% in the quarter, even as they also fulfilled more than three-quarters of Target’s digital sales, including more than 90% growth of our same-day services.

“Market-share gains of more than $1bn in the first quarter, on top of $1bn in share gains a year ago, demonstrate Target’s continued relevance with our guests, even as they have many more shopping options compared with a year ago.”

Target anticipates its operating margin rate for the second quarter to increase beyond the 2019 rate of 7.2%.

The retailer expects positive single-digit comparable sales growth in the last two quarters of the year.

In March, Target revealed plans to invest $4bn a year for the coming years to strengthen its retail operations in the US.

The company said it would focus on accelerating the opening of new stores, remodels and improved fulfilment services and store experiences, along with last-mile and replenishment capabilities.