Target Extends Enhancements to Pay and Benefits and Provides COVID-19 Business Update
In recognition of the significant contributions of frontline team members,
"We have deep gratitude for the remarkable effort our team has put into supporting guests across the country. We remain committed to prioritizing our efforts to provide for their well-being so they can take care of themselves and their families during this unprecedented time," said Brian Cornell, chairman and CEO of
To enhance the safety of its stores and distribution centers,
More information on how
Update on Financial Performance
"Our strategy was built to be durable and sustainable in any environment and its strength is driving our business in the face of marked shifts in shopping behaviors caused by COVID-19," said Cornell. "Because of our strong business model, we are able to make considerable investments to support our team, put protections in place, and adjust to serve our guests who are being advised to shelter in place and avoid stores. As a result, we are seeing record-setting digital growth, strong demand for our same-day fulfillment services and broad market-share gains across each of our core categories. While this crisis will certainly put near-term pressure on our profitability, that pressure is far outweighed by doing right by our team and our guests. We're confident the actions we're taking today will drive growth and greater guest affinity over the long-term."
Quarter-to-date, total Company comparable sales have grown more than 7 percent, reflecting a slight decline in stores and more than 100 percent growth in digital channels. Across the Company's core merchandise categories, comparable sales have grown more than 20 percent in Essentials and Food & Beverage, more than 16 percent in Hardlines, increased slightly in Home and declined more than 20 percent in Apparel & Accessories. During the quarter, there have been significant changes in shopping patterns, as guests have reacted to the COVID-19 pandemic. Throughout this period,
- As previously disclosed in the Company's
March 25press release, for the month of February, total Company comparable sales increased 3.8 percent with strength across its entire multi-category portfolio. Late in the month, Targetsaw an increase in traffic and comparable sales in both its stores and digital channels as consumers began stock-up shopping.
- Around the middle of March, there was an even stronger surge in traffic and sales, while category mix became heavily concentrated in the Essentials and Food & Beverage categories. Later in the month, as guests across the country began to shelter in place, sales trends in stores softened significantly while digital sales accelerated dramatically. For the month in total, comparable sales increased in the low double digits, reflecting mid-single digit growth in stores and more than 100 percent in
Target's digital channels. Across the Company's merchandise assortment, March comparable sales increased approximately 40 percent in both Essentials and Food & Beverage, and by approximately 20 percent in Hardlines. For the month, comparable sales declined in the low single digits in Home and more than 30 percent in Apparel & Accessories.
- In early April, sales trends were similar to late March, but improved meaningfully beginning
April 15. Month-to-date in April, comparable sales have increased more than 5 percent, as store comparable sales have declined in the mid-teens while digital comparable sales have increased by more than 275 percent. Across core categories, month-to-date comparable sales have grown more than 12 percent in both Essentials and Food & Beverage, more than 30 percent in Hardlines and in the high teens in Home, while declining more than 40 percent in Apparel & Accessories.
While the Company withdrew its first-quarter guidance on
While we expect our short-term profitability to be affected by COVID-19, we expect to have the financial capacity to emerge from this crisis in a position of strength. Having established an even stronger bond with our guests during this unprecedented time, we expect to have a compelling long-term opportunity to grow profitably and gain additional market share in the years ahead."
Statements in this release regarding the expected profitability in the first quarter as well as first quarter operating margin rate are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to risks and uncertainties which could cause the Company's actual results to differ materially. The most important risks and uncertainties are described in Item 1A of the Company's Form 10-K for the fiscal year ended
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John Hulbert, Investors (612) 761-6627; Joe Poulos, Media, (612) 761-0042; Target Media Hotline, (612) 696-3400