Target Corp. on Wednesday reported higher-than-expected profit and a same-store sales increase of 1.3 percent for the second quarter ended July 29.
However, net income declined 1.2 percent to $672 million from $680 million a year earlier.
Share buybacks boosted earnings per share to $1.22, from $1.07, and beat analyst estimates of $1.19 per share. The increase was driven by traffic growth of 2.1 percent.
Sales in the second quarter rose 1.6 percent to $16.4 billion from $16.2 billion.
Digital channel comparable sales rose 32 percent on top of 16 percent growth in the second quarter of 2016.
Brian Cornell, chairman and chief executive officer of Target said, “In particular, we are pleased that second-quarter traffic increased more than 2 percent, reflecting growth in both our store and digital channels. We continue to focus on our long-term strategy, as we work to transform every part of our business and build an even better Target that will thrive in this new era in retail.”
Target is investing more than $7 billion in technology and supply chain over four years. The company invested nearly $500 million in technology in the first quarter. The retailer’s e-commerce performance has accelerated more quickly than the industry and Target plans to invest more in 2018.
Target launched a 360-degree shopping experience on its web site and is in the early stages of transforming its existing store base, with plans to remodel 600 units and open 100 smaller, flexible-format stores where it’s seen double-digit comp-store sales increases.