Shares of Target Corporation (NYSE: TGT), a leading consumer goods retailer with over 1,800 stores and Target.com, are jumping over 19% higher Wednesday morning after a strong second quarter and raised guidance pushed the stock to all-time highs.
Starting from the top, Target's total revenue increased 3.6% from the prior year to $18.4 billion, topping analysts' estimates calling for $18.3 billion. The top-line growth was driven by a healthy 3.4% increase in comparable-store sales and a 2.4% increase in comparable-store traffic -- more people are shopping at Target, and they're buying more when they're there. The good news for investors is that top-line growth filtered down to a stronger bottom-line result. Adjusted earnings per share checked in at $1.82 during the second quarter, a 24% gain compared to the prior year's result and well ahead of analysts' estimates calling for $1.62 per share.
Brian Cornell, chairman and CEO of Target, had this to say in a press release: