Target surges on same-day service boost

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Target surges on same-day service boost
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Target Corp raised its annual profit forecast on Wednesday after reporting bette...

- Target Corp raised its annual profit forecast on Wednesday after reporting better-than-expected quarterly results as higher investments to remodel stores and beef up digital business drew in more shoppers, sending shares up 17%.

These services allow shoppers to pull into a store and pick-up their orders within minutes of placing them through the mobile app or website. The company said one out of five customers, who used its same-day service in the second quarter, were new. Earlier this week, the company said it was starting a new grocery brand, Good & Gather, that would hit stores in September.

“The strong gross margin performance despite the slew of weather-driven markdown concerns highlights the companies balanced mix, strong execution, and scaling e-commerce strategies,” J.P. Morgan analyst Christopher Horvers said.

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