- Stocks of Target Corporation (NYSE:TGT, TGT:US) shot up by about five per cent on Wednesday, May 19.
- The spike came as the company announced that it is expecting wider 2021 margins.
- Target Corporation said that a boost in demand for home decor items and apparels has helped propel the company’s profits.
Stocks of Target Corporation (NYSE:TGT, TGT:US) shot up by about five per cent on Wednesday, May 19. The spike came as the company announced that it is expecting wider 2021 margins.
One of the largest retailers in the United States, Target Corporation said that a boost in demand for home decor items and apparels has helped propel the company’s profits.
Target stock was trading at US$ 217.34 apiece (10AM EST) on Wednesday. The retailer revealed that its full-year profit margin may reach eight per cent or more and it will be 'well above' last year's level.
Target Corporation CEO Brian Cornell said that the first fiscal quarter was “outstanding” for the company and it included over US$ 1 billion in market-share gains. Notably, the company was not so confident back in March when it said that the operating margins would range between six or seven per cent.
Ramped-up vaccine rollout and people are stepping outdoors to purchase products have reportedly boosted the company's confidence.
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Target Corporation Q1 FY21 Key Highlights
Target's comparable sales grew 22.9 per cent year-over-year (YoY), reflecting comparable store sales growth of 18 per cent and digital sales growth of 50 per cent YoY. Its operating income was US$ 2.4 billion, noting an increase of 407 per cent YoY.
Target’s net earnings soared by about 640 per cent YoY and amounted to US$ 2.1 billion in the latest quarter. The company also maintained a strong balance sheet with its current assets valued at US$ 19.9 billion.
Target Corporation Stock Performance (NYSE:TGT, TGT:US)
Target stock soared by 67.6 per cent in last one year, beating the S&P 500 Index’s growth in the same period. Target scrips surged by 24 per cent in the past six months, while its year-to-date (YTD) growth stood at 17 per cent.
1-year chart of stock performance, volume and moving average of Target Corporation (Source: Refinitiv)
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