Target reports a monster quarter — profits jump 80%, same-store sales set record

Business

Back-to-school supplies are displayed at a Target store on August 03, 2020 in San Rafael, California.

Justin Sullivan | Getty Images

Target is set to report its fiscal second-quarter earnings before the bell Wednesday that will show if the retailer got the same bounce in sales from stimulus check spending that helped rival Walmart deliver its biggest earnings surprise in 31 years earlier this week.

Here’s what Wall Street is expecting, based on average analysts’ estimates compiled by Refinitiv.

  • Adjusted EPS: $1.62
  • Revenue: $20.09 billion
  • Same-store sales: up 7.6% in the U.S., according to StreetAccount survey

During the early months of the coronavirus pandemic, the national retailer’s e-commerce options — such as curbside pickup and its home delivery service Shipt — gained popularity and drew in new customers. Target’s earnings report will indicate whether consumers are sticking with those habits or returning to more typical shopping patterns, such as making more trips to stores and buying apparel, which had dropped off in the fiscal first quarter.

Wall Street investors and analysts are also waiting to hear more details about the national retailer’s plans for two crucial shopping seasons: back to school and the holidays. Families may spend less or shop differently this year, as students prepare for virtual learning or attend in-person classes fewer days of the week.

In late July, Target said it will be closed on Thanksgiving, the typical kickoff to the holiday season. However, the company said it will start holiday promotions “earlier than ever.”

This is breaking news. Please check back for updates. 

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