Target shares climbed as much as 3% on Wednesday following first-quarter results that showed earnings surged as shoppers took advantage of the company's same-day services.
The retailer said its adjusted earnings were $3.69 a share, well beyond the $2.25 a share forecast generated from a Refinitiv poll of analysts. Adjusted earnings soared from $0.59 a share a year ago.
Total revenue increased by 23% to $24.2 billion in the three months ended May 1 from $19.62 billion a year ago, outpacing the $21.81 billion consensus estimate.
The stock has gained more than 70% over the past year as the retailer, like others, has dealt with challenges brought on by the COVID-19 pandemic.
Target said growth in the most recent period stemmed in part from a 50% climb in same-store digital sales, including more than 90% rise in same-day services such as drive-up and in-store order pickup and Shipt grocery deliveries.
Shoppers purchased more apparel and home goods items, which helped the company gain more than $1 billion in market share during the quarter.
"[We're] confident in continued comp growth in the second quarter and through the remainder of the year, as well as a healthy full-year operating margin rate," Target said in its earnings report.
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