Target Corp. (TGT) showed that retail trade is not under pressure by Amazon.
During afternoon trading, Target increased over 3% to $ 85.75 per share.
The dealer filed Wednesday 22 August. Increased growth by 6.4 percent is the strongest figure it has been published since the company began reporting traffic in 2008. It also announced a comparable sales growth of 6.5 percent, which is the largest increase of 13 years.
Comparable digital sales increased by 41%, increasing growth of 32% reported a year ago.
"Target hit bullies in the second quarter, with improvements over virtually all meaningful measures, resulting in 41% net sales growth and comparable sales growth growth of almost 5%," says Charlie Shea, Moody's leading retail analyst. "The increase in guidance for the half-year is in line with our view that there are macro-economic winds that can be utilized by the strongest and most economically flexible resellers who hit all cylinders, definitely targeting that class." [1
"We are very pleased with Targets second quarter results, showing our guests the excitement for the improved and differentiated shopping experience we are building. For the second quarter in a row, traffic is better than we've seen over 10 years, running 6.5 percent comp Growth – Target is the best in 13 years. "Cornell, MD of Target said. "We presented a clear strategy in the beginning of 2017 and throughout the year we have accelerated the implementation phase. We are on the right track to deliver a strong backlog and we have updated our full-year guide to reflect the strengths of our business and consumer economy. Towards 2019, we expect to reach a scale across the plan for our initiatives – create efficiency and cost savings, further strengthen our guest experience and positioning Target to continue gaining market share. "
Revenue also increased to $ 17.55 billion and hit FactSet- expectations of $ 17.23 billion.
When we talked about charges at the investor conference call, Cornell said: "Our concern is focused on the impact of consumer and economy taxes, not on our business model."
On the conversation, Target said it rebuilt over 250 of its stores in July , which is the highest amount of renovations Target has undertaken at once.
Objectives announced that the emergency service, which allows consumers to have a target employee take out goods for the car, was available at 50 seats at the beginning of the year to over 800 seats at the end of the second quarter.  "The dynamics we see throughout our business is amazing," says Mark Tritton, Chief Sales Officer, on the investor call.
Target said that it refers to brands against "prominent Gen Z guests".
Target tax rate was 10% lower than last year due to tax cuts, Cathy Smith, CFO reported.
Smith talked about the "bold investment plan" Target rolled out in 2017. She said the plan has expired.
"I feel very good about the team's efforts," Cornell said. He talked about "mixed management" of online and in store and said that the combined operation increased the quarter.
"We know we have a lot of work to do," said Cornell. He told analysts that the focus will be on improving the container.
"90% of retail sales are made in store," said Cornell. Discusses winners and losers in retail, "we really think we're moving to the winning column."
"85% of US business goals each year," Cornell said. The end of Toys R Us and Baby R Us drove toy sales, he added.
"We put the stores in the middle of our overall strategy," Cornell replied to TheStreet's @BrianSozzi. "Our stores meet [the majority] of our online orders."
"In my career, I do not remember a stronger consumer environment than we have now," Cornell said. He attributed the strength to GDP and the housing environment.
"Economy shows no signs of weakness," said David Russell, CEO of Content Strategy at Tradestation. "We are in an environment where there has been a lot of boogeymen [student loans, debt, etc.]."
Target mentioned in his telephone conversation with investors that it not only chased after Millennials but also Gen Z. "I think it's very smart … reaching out to Gen Z," says Jennifer Olson, senior financial analyst at Apriem Advisors. "[Target] is in a better position to attract a younger generation." Olson credited toys R's case as a step for Target.
"We expect [Target] shares to outperform strong growth and likely modest revisions of the F2018 consensus EPS. Our $ 85 pricing is reviewed with an upward bias." Stifel analyst Mark Astrachan wrote in a statement about Target's performance.
When asked what he was thinking about the goal numbers, Jeff Macke, president of Macke Asset Management and a Target bull replied that the numbers were "glorious".  The number $ TGT is glorious, Katherine. So well, the sun actually rose 3 hours early in San Diego. It's tomorrow at Target again …
Excuse me, I need hump patriotic songs while Cornell speaks to @BeckyQuick
– Jeff Macke (@JeffMacke) August 22, 2018
"The story is about about the conversion of this company, says Russell. "You are looking at a company that has invested to survive in Jeff Bezos and Amazon's age."