Shares of Target (NYSE:TGT), a leading retailer with more than 1,800 stores, were up as high as 10% Wednesday morning after the company released solid first-quarter results.
Target's first-quarter total revenue increased by 5% to $17.63 billion, topping analysts' estimates of $17.52 billion. Target's net earnings rose 10.8% to $795 million, or $1.53 per share, which was well ahead of the prior year's $1.33 result and ahead of analysts' estimates calling for $1.43 per share. Two more bright spots in Target's first quarter were a strong 4.8% increase in same-store sales and a 42% increase in online sales.
"Target had an outstanding first quarter, as our team delivered a great experience for our guests and drove strong growth in traffic, comparable sales, operating income, and earnings per share," CEO Brian Cornell said in a press release. "Over the last two years we have made important investments to build a durable operating and financial model that drives consumer relevance and sustainable growth."
It was a solid first quarter from Target, and the market-share gains and online sales growth confirm the effectiveness of the company's moves over the past two years to improve its business model and operations. Management will continue expanding its same-day fulfillment options as well as strengthen its portfolio of brands, and keep remodeling stores, throughout 2019.
The company also believes it mitigated past tariffs well, and has plans to similarly mitigate incoming tariffs. After a couple of rocky years for retailers, there seems to be separation between those that had the ability to adapt and invest in e-commerce, among other things, and those that continue falling further behind. The first quarter gives investors confidence Target has made the necessary adjustments.