How Target Blew Away Earnings Expectations
Target (NYSE: TGT) posted yet another strong quarter of revenue and earnings growth on Wednesday, defying the malaise of the retail industry. Revenue rose 4.7%, with digital sales leading the way, up 31% year over year. Adjusted earnings per share climbed 24.9% on the back of a 22.3% increase in operating income.
Target's numbers compare favorably to its biggest rivals, Walmart (NYSE: WMT) and Amazon (NASDAQ: AMZN). While Walmart's online sales outpaced Target's by 10 percentage points, Target saw its overall sales grow faster thanks to strong store traffic growth. Meanwhile, Target's digital growth outpaced Amazon's 24% increase in North American sales.
Most importantly, Target is growing its sales in an extremely cost-efficient manner, which has led to its excellent bottom-line results.
Source Fool.com
