Target Corp. (NYSE:TGT) Q1 2020 Earnings Conference Call - Final Transcript

May 20, 2020 • 08:00 am ET


Target Corp. (NYSE:TGT) Q1 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by. Welcome to the Target Corporation First Quarter Earnings Release Conference Call. [Operator Instructions]

I would now like to turn the conference over to Mr. John Hulbert, Vice President, Investor Relations. Please go ahead, sir.

John Hulbert

Good morning, everyone, and thank you for joining us on our first quarter 2020 earnings conference call.

On the line with me today are Brian Cornell, Chairman and Chief Executive Officer; John Mulligan, Chief Operating Officer; and Michael Fiddelke, Chief Financial Officer. In a few moments, Brian, John and Michael will provide their perspective on the first quarter and our continued focus on our guests and our team as we navigate through the current environment. Following their remarks, we'll open the phone lines for a question-and-answer session.

This morning, we're joined on this conference call by investors and others who are listening to our comments via webcast. Following the call, Michael and I will be available to answer your follow-up questions.

And finally, as a reminder, any forward-looking statements that we make this morning are subject to risks and uncertainties, the most important of which are described in our most recently filed 10-K and the 8-K we furnished this morning. Also, in these remarks we refer to non-GAAP financial measures, including adjusted earnings per share. Reconciliations of all non-GAAP numbers to the most directly comparable GAAP number are included in this morning's press release which is posted on our Investor Relations website.

With that, I'll turn it over to Brian for his thoughts on the first quarter and the short-term and longer-term implications for our business. Brian?

Brian Cornell

Thanks, John, and good morning, everyone.

We appreciate that you've joined us on this morning's call, and we hope that you, your family and friends are safe and healthy. It goes without saying that this quarter was unlike anything we've seen in our Company's long history. And, while we didn't establish another all-time record for this quarter's EPS, I have never been more proud of our performance. Over the last few years, we've built a strategy and operating model that's designed to generate strong performance in a wide variety of environments. And the first quarter demonstrated the strength of that model.

Unprecedented volatility within the quarter presented the most extreme test of our business and operations that I could have imagined. And in that environment, we drove industry leading growth with a total comp sales increase of 10.8% and digital comp growth of more than 140%.

As I reflect on all that's transpired since the quarter began in February, there were two key factors in our success: our strategy of positioning stores as fulfillment hubs and our unbelievable team. When guests began flocking to our stores to stock up, our team was ready. And when digital demand exploded as guests began to shelter in place, our teams had the tools, processes and capability to flex to meet that shift in demand. But it goes well beyond processes and tools because our team's