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Target online sales climb 195% in 2nd quarter, profits jump 80%

Target reported earnings that crushed Street expectations. The retailer saw a an 80% jump in profits and a 700% increase in its curbside pickup service. In addition, Target saw a 195% increase online sales, helping the company minimize the impact of COVID-19. The Final Round panel breaks down the details.

Video Transcript

SEANA SMITH: All right, well, let's talk about a big story today, and that, of course, is retail. We heard from Target and Lowe's, both reporting extremely strong numbers, Target's profit jumping 80% and Lowe's posting a 30% surge in revenue. Emily McCormick joins us now with more on this. Emily.

EMILY MCCORMICK: Absolutely, Seana. So taking a look at Target, that stock actually closing at a record high today, following those second quarter earnings results with stock jumping more than 12%. One of the key metrics to really keep in mind here was that comparable same-store sales growth. That rose by a record 24.3% in the second quarter. That was almost three times the 8.6% growth rate that had been expected.

Now, really driving this sales growth was the digital sales growth in particular that we saw. That was up nearly threefold-- 195% growth in the second quarter to comprise 13.4 percentage points of that overall comp game that we saw for Target. Just taking a look at sales category, really saw strength across the board here. We saw apparel swing from a 20% sales decline in the first quarter to a double-digit growth rate in the second. We also saw home goods sales up 30%, electronics up 70%, and each of beauty, food and beverage, and essential sales up 20% respectively.

Now, one thing that was a little bit less of a bright spot here for Target's results was really the outlook that they were giving for the current quarter. And Target executives mentioned on the call this morning that they were seeing August comparable same-store sales in the low double digits so far. So we think about that coming down from a 24% comp in the second quarter-- that is a bit of a step down here, but still historically high from Target overall.

Then, taking a look here at Lowe's, also want to point out that, as we saw with Home Depot, Lowe's benefiting from a surge in consumer DIY projects during these shelter-in-place orders that we had during the spring and during the second quarter overall. Lowe's actually out-comped Home Depot with a 35% gain on that metric in the US. We saw Home Depot with a 25% increase in the US in its results yesterday. So Lowe's here really benefiting from that larger retail customer base and that larger DIY customer base, as opposed to what we've seen from Home Depot. Seana.

SEANA SMITH: Yeah, very, very strong numbers here from both of these companies. Really, when you take into account what we've heard from Target, Walmart, Home Depot, and Lowe's over the last few days, it's pretty incredible stuff from all them. All right--