LONDON (ShareCast) - (Sharecast News) - Target said it gained $1bn (£707m) of market share in the first quarter as the US retailer reported forecast-beating earnings.
Adjusted earnings per share soared 525% to $3.69 in the three months to 1 May from a year earlier, well ahead of the average forecast of $2.25 according to Refinitiv. Revenue rose 23.3% to $24.2bn, outstripping expectations for income of $21.8bn.

The general merchandise seller said investment in exclusive brands and services such as curbside pickup kept customers coming back and that it benefited from the US economy reopening and busier social calendars, benefiting clothing sales. It added $1bn of market share in the quarter, adding to $1bn of gains achieved in 2020.

Target said it expected second quarter growth of comparable sales in the mid-to-high single digits with "positive single-digit comparable sales growth in the rest of the year. The second quarter operating margin will be well above the figure of 7.2% a year earlier but probably lower than 2020's 10%, Target said. The annual margin has the potential to be 8% or "somewhat higher".

Brian Cornell, Target's chief executive, said: "Given the trust we've built with our guests quarter after quarter and our commitment to adjusting along with them to the ongoing shifts in the macro environment, we're confident in continued comp growth in the second quarter and through the remainder of the year, as well as a healthy full-year operating margin rate."

Target processes almost all of its online orders in its stores, making it highly efficient, and increased employee wages before rivals, heading off potential staff shortages and keeping stores well maintained.

"Store comp sales grew 18% in the quarter, even as they also fulfilled more than three-quarters of Target's digital sales - including more than 90% growth of our same-day services," Cornell said.

Target shares rose 3.2% to $213 in premarket trading. The shares have risen from $123 in the past year.

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