The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
CHICAGO, United States — Target Corp. on Wednesday reported a larger-than-expected rise in quarterly earnings as revenue got a boost from online sales and a program to narrow its product focus.
The fourth-largest U.S. retailer also raised its full-year earnings forecast for the second time, and its shares jumped 4.7 percent to $84.10 in pre-market trading.
Excluding special items, earnings rose to $1.22 per share in the second quarter ended on Aug. 1 from $1.01 a year earlier.
Net sales rose 2.8 percent to $17.4 billion.
ADVERTISEMENT
Analysts on average expected per-share profit of $1.11 on sales of $17.4 billion, according to Thomson Reuters I/B/E/S.
Target said sales at stores open at least a year rose 2.4 percent, beating the market consensus of 2.2 percent, according to research firm Consensus Metrix. Digital sales increased 30 percent and contributed 0.6 percentage points to comparable sales growth.
For the full year, the retailer said it expected earnings of $4.60 to $4.75 per share, excluding special items, against its previous outlook of $4.50 to $4.65. Analysts on average expect $4.62, according to Thomson Reuters I/B/E/S.
Under Chief Executive Officer Brian Cornell, Target has focused on promoting a narrower set of products, or "signature categories," that include apparel and items for children, babies and health and wellness.
By Nandita Bose; editor: Lisa Von Ahn.
In 2020, like many companies, the $50 billion yoga apparel brand created a new department to improve internal diversity and inclusion, and to create a more equitable playing field for minorities. In interviews with BoF, 14 current and former employees said things only got worse.
For fashion’s private market investors, deal-making may provide less-than-ideal returns and raise questions about the long-term value creation opportunities across parts of the fashion industry, reports The State of Fashion 2024.
A blockbuster public listing should clear the way for other brands to try their luck. That, plus LVMH results and what else to watch for in the coming week.
L Catterton, the private-equity firm with close ties to LVMH and Bernard Arnault that’s preparing to take Birkenstock public, has become an investment giant in the consumer-goods space, with stakes in companies selling everything from fashion to pet food to tacos.