Target Corporation reports second quarter earnings

•Second quarter comparable sales grew 8.9 percent, on top of record growth of 24.3 percent last year.

◦Comparable sales growth was driven entirely by traffic.

◦Store comparable sales increased 8.7 percent, on top of 10.9 percent growth last year.

◦Digital comparable sales grew 10 percent, following growth of 195 percent last year.

◦Digital sales continue to be led by same-day services (Order Pickup, Drive Up and Shipt), which grew nearly 55 percent this year, on top of more than 270 percent last year.

◦More than 95 percent of Target’s second quarter sales were fulfilled by its stores.

•All five core merchandise categories delivered positive comparable sales, on top of last year's historic sales performance.

•Second quarter GAAP EPS of $3.65 was 8.9 percent higher than last year, and Adjusted EPS1 of $3.64 was 7.9 percent higher than last year. Second quarter GAAP and Adjusted EPS have doubled since Q2 2019.

•Target's Board of Directors has approved a new, $15 billion share repurchase program.

•For additional media materials, please visit:

https://corporate.target.com/article/2021/08/q2-2021-earnings

MINNEAPOLIS (August 18, 2021) – Target Corporation (NYSE: TGT) today announced its second quarter 2021 financial results, which reflected increases in both sales and profitability on top of record growth a year ago. The Company reported second quarter GAAP earnings per share (EPS) of $3.65, up 8.9 percent from $3.35 in 2020. Second quarter Adjusted EPS of $3.64 grew 7.9 percent compared with $3.38 in 2020. The attached tables provide a reconciliation of non-GAAP to GAAP measures. All earnings per share figures refer to diluted EPS.Brian Cornell, chairman and CEO of Target Corporation, said, “In the second quarter, our business generated continued growth on top of record increases a year ago, reinforcing Target’s leadership position in retail. We’ve spent years building and investing in the durable model we have today, which is supported by a differentiated strategy and the best team in retail.

Even after unprecedented growth over the last two years, we see much more opportunity ahead of us, and we’re leaning into opportunities to invest in the long-term growth and resiliency of our business. Our team and operating model can seamlessly adapt to changes in the environment, and we’re well-positioned to deliver outstanding performance in the back half of the year.”

Fiscal 2021 Guidance

For the second half of 2021, the Company expects high single digit growth in comparable sales, near the high end of the previous guidance range.

The Company now expects its full year operating income margin rate will be 8 percent or higher.