Target Corp. (NYSE:TGT) Q2 2020 Earnings Conference Call - Final Transcript

Aug 19, 2020 • 08:00 am ET

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Target Corp. (NYSE:TGT) Q2 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by. Welcome to the Target Corporation, Second Quarter Earnings Release Conference Call. [Operator Instructions]. Afterwards we will invite you to participate in a question-and-answer session. At the close of prepared remarks, we will open the queue for the Q&A session. [Operator Instructions]. As a reminder, this conference is being recorded, Wednesday, August 19th, 2020.

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

Executive
John Hulbert

Good morning everyone, and thank you for joining us on our second 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 second quarter and our continued focus on our guests and our team as we navigate through the current environment. Following their remarks, we will open the phone lines for a question-and-answer session.

This morning, we are 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 SEC filings. 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 quarter and our focus going forward. Brian?

Executive
Brian Cornell

Thanks, John and good morning everyone. Today, we're sharing second quarter results that are by virtually any measure exceptional. But I want to say at the outset that what's most extraordinary of all is the environment in which we generated those results. The incredible resilience of our team, the way they have risen first to the pandemic then, the social trauma touched off in May here in Minneapolis is unlike anything I've seen or am likely to see again in my career.

And I say in all humility that it has been a huge privilege to work alongside this team in this moment. The results we reported this morning are truly unprecedented. On the top line, we delivered second quarter comparable sales growth of 24.3%, the strongest we've ever reported. Equally remarkable on the bottom line, we generated adjusted EPS of $3.38, a new record high and strong enough to offset the significant profit headwind we faced in the first quarter. These results are a testament to our team, and their passion for our guests, and the increasing trust our guests are placing in our brand.

Our performance also reflects the meaningful investments we've made in recent years, building a business model that is