It seems Target's (NYSE:TGT) turnaround strategy is taking hold, as the retailer reported a 52 percent increase in profits to $635 million in the latest quarter. Revenue was also up 3 percent and same-store sales climbed 2.3 percent. Online sales were also a big winner, up 38 percent.
What a difference a year makes. Last spring the big-box retailer was dealing with the losses in its Canadian stores, which ultimately led to the shuttering of all 133 Canadian stores—not to mention the loss of customer trust from its holiday 2013 data breach.
Although selling off of the Canadian stores contributed to the quarterly revenue, profits still rose 14 percent without the sales, reported the Star Tribune.
"The momentum we've seen so far makes us more confident than ever that we're moving in the right direction and encourages us to move even faster," Target CEO Brian Cornell said in a quarterly conference call.
Earlier in the year, Cornell pledged to put more emphasis on four signature categories: style, kids, baby and wellness. Sales in those categories grew more than twice as fast as overall sales in Q1.
Cornell also discussed the good and bad aspects of the Lilly Pulitzer collection's debut in April. The line caught consumer attention and sold out on its first day, showing both the brand's strengths and weaknesses, as resultant online traffic crashed Target's website.
"Our digital channels were not able to properly accommodate the surge in traffic at the time of the launch," Cornell said. "The team is working to address root causes and to learn from the experience as we prepare for holiday season peak later in the year."
Though optimistic, Cornell said the company was still going through some changes since laying off 1,800 employees at its headquarters to better meet guests' needs.
-See this Star Tribune article
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