Target CFO Weighs In On Q2 Earnings

Target Corporation TGT pleasantly surprised the Street on Wednesday by reporting better than expected earnings and upping its full-year guidance. The company declared EPS of $1.22 for the quarter on revenue of $17.4 billion, compared to EPS of $0.11 on revenue of 417.4 billion that the Street was expecting.

Target CFO and recently appointed COO, John J. Mulligan, was on CNBC post the results to weigh in on the earnings.

Growth And Obstacles

"We are really pleased with the growth," Mulligan began. "It's little bit more than double what we saw at least for the market metrics. We cycled against some incredibly strong promotions last year. Particularly in electronics online, we are using that to bring the guests back to the store. So, we cycle past that, we will continue to grow that business."

Big Driver Of Conversion

He continued, "We have things that will help conversion like we call it Available to Promise, where we will commit to a guest that if you order by a certain time, we will get it to you in either two or three days. So, they know for sure that they are going to get that product and today we commit to the outside, the worst possible scenario. That will be a big driver of conversion."

Digital Channel

"We will bring great product online and continue to integrate our online business with our stores and all of that we think will continue to drive robust growth for our digital channel," Mulligan said.