Target traveled a warm American economy to its strongest quarter for more than a decade.
The company reported that sales in stores for at least one year increased by 6.5%, mostly in 1
The goal score blew past Wall Street's expectations, send the stock stock more than 5% in premarket trading Wednesday morning.
Target also increased its overall outlook, reflecting the company's confidence that it continues to benefit from spending more customers in the second half of 2018 and for the vacation.
The company's share has grown by 47% over the past year, the result of a strategic transition presented in early 2017.
The targets said at that time that it would spend $ 7 billion to improve the digital business , expanding private label collections, lower prices and rebuilding. It also opens smaller store formats in major cities like New York and near the university campus.
Movements, including Shipt last year's purchase to accelerate delivery on the same day, have worked: Targets' digital sales increased 41% last quarter compared with a year ago. Target has also tried to differentiate itself from competitors by expanding "Drive Up", a pickup service that allows customers to pre-order from stores and get employees to load them into the items in their clothes.
Wall Street was willing to ignore the target of Target's profit margin last quarter from its investments and the high costs of online shipping.
Target is the same retail trade surpassed rival Walmart, which reported an increase of 4.5% last week. Walmart said that the number was the best in a decade.
Some analysts were worried that Walmart's strength would remove Target, but low unemployment, a shot from tax cuts and healthy spending on everything from clothes to furniture means that American shoppers are flushed with enough money to spend in both major box stores.
A number of other dealers have also written star blocks. ] ] and ] and Macy's ( ]) M showed a strong sales increase with the same store. On Tuesday TJX ( reported a 7% increase in the division which includes TJMaxx and Marshalls on Tuesday while ) Urban Outfitters ( said it had a record period. )
"There are macroeconomic tailwinds that can be utilized by the strongest, most economically flexible retailers who hit all the cylinders, definitely aiming for that class," says Moody's leading analyst Charlie O & # 39; Shea in an email.
Target sees a great opportunity to capture the merchant's attention by building on own brands offering higher margins than selling other business's items. In recent months, it has launched Heyday, the first electronic brand and new clothing lines for men and women.
It hurts Target's longtime partner, however: Hanesbrands ( parent company of Champion, killed earlier this month after the company said Target faced the C9 of Champions Exclusive )
CNNMoney (New York) First published August 22, 2018: 06:43 ET