Q2 2024 Target Corp Earnings Call Transcript
Key Points
- Target Corp (TGT) achieved a 2% growth in comparable sales for Q2, driven entirely by increased traffic.
- EPS of $2.57 exceeded the high end of guidance, representing a 42% increase over the previous year.
- Digital sales saw high single-digit growth, with same-day services like Drive Up and Target Circle 360 growing in the low teens.
- Apparel sales improved significantly, with a 3% growth in comp sales, driven by the All In Motion brand.
- Target Circle loyalty platform added over 2 million new members in Q2, enhancing customer engagement and personalized offers.
- Despite overall growth, discretionary categories like home and hardlines remain soft, though they showed some improvement.
- The company faces ongoing challenges with inventory shrink, although there has been some progress in reducing these costs.
- The macroeconomic environment remains uncertain, leading to a cautious outlook for the remainder of the year.
- Supply chain and digital fulfillment costs continue to exert pressure on gross margins.
- The search for a new CFO is still ongoing, which may impact leadership stability in the financial department.
(audio in progress) Corporation Second Quarter Earnings Release Conference Call. (Operator Instructions) As a reminder, this conference is being recorded, Wednesday, August 21, 2024.
I would now like to turn the conference over to Mr. John Hulbert, Vice President, Investor Relations. Please go ahead, sir.
Good morning, everyone, and thank you for joining us on our second quarter 2024 earnings conference call. On the line with me today are Brian Cornell, Chair and Chief Executive Officer; Rick Gomez, Chief Commercial Officer; and Michael Fiddelke, Chief Operating Officer and Chief Financial Officer.
In a few moments, Brian, Rick and Michael will provide their insights on our second quarter performance, along with our outlook and priorities for the third quarter and remainder of the year. Following their remarks, we'll open the phone lines for a question-and-answer session. This morning, we're joined on this conference call by investors and others who will be listening to our
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