Minneapolis-based Target Corp. reported its first quarter earnings today, with results crushing estimates to kick off 2021 much where 2020 left off.
The retailer’s omnichannel fulfillment model continues to win with more than 95% of digital orders fulfilled utilizing a brick-and-mortar Target store. Sales spiked 23% as total revenues grew to $24.1 billion versus $19.6 billion in the first quarter of last year.
“Our performance in the first quarter was outstanding on every measure and showcased the power of putting our stores at the center of our strategy,” says Target Chairman and CEO Brian Cornell. Store comp sales grew 18% percent in the quarter, even as they also fulfilled more than three-quarters of Target’s digital sales — including more than 90% growth of our same-day services. Importantly, market-share gains of more than $1 billion in the first quarter, on top of $1 billion in share gains a year ago, demonstrate Target’s continued relevance with our guests, even as they have many more shopping options compared with a year ago.”
As the toy industry awaits the overdue public release of The NPD Group’s Q1 U.S. toy industry sales report, the results from Target reflect much of the same positivity that has been seen throughout the industry.
On a call with investors and analysts this afternoon, Christina Hennington, Target’s recently-promoted executive vice president and chief growth officer highlighted the exceptional 30% growth in the company’s hardlines departments.
“Results were led by sporting goods and toys, which both saw comps above 40%,” she says.
In recent years, Target has placed increased emphasis on its toy and game selection, including a recent partnership with FAO Schwarz during the last holiday season, and an increasing amount of exclusive toys and collectibles from major brands and emerging companies.
