Target (TGT) Is Off to A Great Start In 2021

Target Corp. (NYSE:TGT) history dates back to 1902 when George Dayton established a departmental store named Goodfellow Dry Goods. A few years later, it was renamed Dayton Company. In 1962, the company launched a discounted version of its store called Target that became a leading revenue generator in a short span of time. Target’s annual revenue crossed $1 billion in 1979. Dayton once again changed its name to Target Corp in 2000 to reflect the success of the chain. Today, it is one of the biggest discount retailers in the U.S, operating more than 1,900 stores (see 15 best retail stocks for 2021).

The Minnesota-based retail giant is off to a great start in 2021. The company recently posted record earnings and revenue for the first quarter ended May 1. Target reported earnings of $2.097 billion, or $4.17 per share for the quarter, well above 56 cents per share in the comparable period of 2020. On an adjusted basis, the company’s earnings skyrocketed more than 500 percent to $3.69, crushing analysts’ average estimate of $2.21 per share.

Total revenue in the quarter jumped 23.4 percent on a year-over-year basis to $23.88 billion, easily beating the consensus forecast of $21.75 billion. Comparable-store sales in the quarter rose 22.9 percent, while digital comparable sales climbed 50 percent.

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Praising the results, CEO Brian Cornell said in a statement, “Our performance in the first quarter was outstanding on every measure and showcased the power of putting our stores at the center of our strategy. Store comp sales grew 18.0 percent in the quarter, even as they also fulfilled more than three quarters of Target’s digital sales – including more than 90-percent growth of our same-day services. Importantly, market-share gains of more than $1 billion in the first quarter, on top of $1 billion in share gains a year ago, demonstrate Target’s continued relevance with our guests, even as they have many more shopping options compared with a year ago.”

Looking forward, Target is expecting its comparable sales to grow in the mid to high single-digit for the second quarter. Target stock made a new 52-week high of $218.50 following its strong financial results.