Target Corporation on May 22 announced its first quarter 2019 performance, including comparable sales growth of 4.8 percent driven by a 4.3 percent increase in comparable traffic. The company reported GAAP earnings per share (EPS) from continuing operations of $1.53 in first quarter 2019, up 15.1 percent from $1.33 in first quarter 2018. First quarter adjusted EPS were $1.53, up 15.9 percent from $1.32 in first quarter 2018.

“Target had an outstanding first quarter, as our team delivered a great experience for our guests and drove strong growth in traffic, comparable sales, operating income and earnings per share,” said Brian Cornell, chairman and CEO of the Minneapolis, MN based merchandiser. “Over the last two years we have made important investments to build a durable operating and financial model that drives consumer relevance and sustainable growth. Target’s first quarter performance and market-share gains demonstrate that the model is working. Throughout this year, we will continue to extend the reach of our same-day fulfillment options, strengthen our portfolio of owned and exclusive brands, remodel and open more stores and invest in our team. We’re confident that we’re well-positioned to deliver strong financial performance in 2019 and beyond.”

Total revenue of $17.6 billion increased 5.0 percent from $16.8 billion last year, reflecting sales growth of 5.1 percent combined with a 0.5 percent increase in other revenue.

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First quarter sales growth of 5.1 percent reflected comparable sales growth of 4.8 percent combined with the contribution from non-mature stores. Comparable digital sales grew 42 percent, contributing 2.1 percentage points to comparable sales growth. Operating income was $1.14 billion in first quarter 2019, up 9.0 percent from $1.04 billion in 2018.

First quarter operating income margin rate was 6.4 percent in 2019, compared with 6.2 percent in 2018. First quarter gross margin rate was 29.6 percent, compared with 29.8 percent in 2018, reflecting higher digital fulfillment and supply chain costs, partially offset by the benefit of merchandising strategies. First quarter SG&A expense rate was 20.8 percent in 2019, compared with 21.1 percent in 2018. This performance reflected cost savings in technology and a year-over-year timing benefit in marketing expenses, combined with strong expense control across the company which offset continued pressure from wage growth.