Target on Wednesday reported a mixed second quarter. For the three months ending July 29, profits beat expectations but sales were softer than expected. Total revenue of $24.8 billion was down nearly 5% year over year.
Comparable sales declined 5.4%, with comp store sales decreasing 4.3% and comp digital sales falling 10.5% year over year. Operating income was $1.2 billion, a 273% spike, driven by a higher gross margin rate.
Target CEO Brian Cornell also acknowledged that a strong negative reaction to this year’s Pride month merchandise assortment affected revenue. The company defended its response to the controversy, which included removing and repositioning merchandise, saying it sought to maintain the safety of its in-store team members in the face of threats and violence.
Source: Retail Dive
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