As a result, second-quarter sales grew 1.6 percent, marking the first increase in more than a year.
"Second-quarter traffic was much stronger than our expectations, and the strength was broad-based - across the country, across categories and across channels," said Brian Cornell, Target's chief executive, in a recent call with analysts. "The positive response from our guests shows we're making progress."
Analysts attributed that growth to Target’s success with private-label brands such as the children’s line Cat & Jack, which Cornell said has racked up $2bn in sales in one year, and a partnership with Victoria Beckham. Target is taking note: The company is introducing 12 more brands in the next 18 months, and recently announced a partnership with mattress start-up Casper.
“Exclusive new brands like Cat & Jack in kids clothing, Pillowfort in homewares, and Cloud Island in baby have all performed well,” Neil Saunders, managing director at GlobalData, said in a note to investors. “Not only are these brands credible and compelling, but they are also helping to differentiate Target from rivals.”
