Target reported Q2 2024 financial results on August 21, largely delivering on the market’s expectations for improved revenue (+2.7%) and total comparable sales growth (+2.0%) on easier comparisons. Stores comped positive for the first time in 5 quarters and all category comps improved vs. Q1. However, overall discretionary sales remain negative, and management focused on the improvement in trend vs. actual market share recovery. Profitability seems to be a key driver of the stock up ~11% today, as cost improvements, favorable category mix, Roundel ad sales, and lower shrink all offset higher promotional markdowns, price investments, and digital fulfillment and supply chain costs. Newly promoted CCO Rick Gomez joined the call for the first time, focusing a considerable amount of time on specific newness and seasonally relevant assortment, both planned and already in-store.
Download Harvest Group’s full Target Q2 2024 Recap with unique takeaways here:
