Target Extends Profitable Streak Even As Online Sales Dip

Target’s streak of strong results extended into its latest quarter but its skyrocketing online sales growth has come back to earth, Anne D’Innocenzio reported for the Associated Press (AP).

Photo Insert: Target is still hitting the bullseye when it comes to profits.

The Minneapolis retailer reported Wednesday that sales at its stores that have been open for at least a year rose 8.7% in the three-month period that ended July 31. That was on top of a 10.9% growth in the same 2020 span.

And like Walmart, Target saw a slowdown from last year’s blistering online sales growth as more shoppers came out of their pandemic-forced isolation.

Target’s online sales rose 10% in its fiscal second quarter, compared to a 195% surge in the year-ago period. It was also a slowdown from the first three months of the year when online sales soared 50% from a year ago.

The company said Wednesday that it expects high single-digit percentage growth in comparable sales, near the high end of its previous guidance range. Major retailers are putting up quarterly earnings numbers this week and at Target, like Walmart and Home Depot before it, there is data that points to near normalcy for American shoppers.

At this point last year, millions were stocking up on food and preparing for a long stay at home. This year, the same crowd has at least partially emerged from hibernation, buying clothes, eating out, and traveling.

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