By Dhirendra Tripathi
Investing.com – Target (NYSE: TGT ) shares were up more than 3% in Wednesday’s premarket in response to the company restoring full-year guidance after a strong showing in the quarter ended May 1.
The company had not given any guidance for a year given the changes in spending patterns effected by the pandemic, a change which is now at least partly being reversed as the virus retreats.
Backed by growth in both sales and profitability, the retailer expects its full-year operating margin rate to be “well above the 2020 rate of 7%, with the potential to reach 8% or somewhat higher.”
Target reported good growth across same-stores, digital platform and same-day services. It gained more than $1 billion in market share in the first quarter which the company’s chairman and chief executive officer Brian Cornell attributed to “continued relevance with our guests”.
The company’s bottom line was helped by gains of $335 million on sale of its online beauty company Dermstore.
First quarter adjusted EPS of $3.69, which excludes a $0.53 gain on the sale of Dermstore, grew over five-fold from $0.59 in 2020.
Total revenue of $24.2 billion grew 23% compared with last year.
Operating income was $2.4 billion in first quarter 2021, up 407% from $0.5 billion in 2020.
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