Target CEO Brian Cornell said Thursday the retailer has benefited from investments in online shopping options, but warned it will have lower profits this quarter due to higher costs.
The news sent Target shares tumbling nearly 7% in premarket trading.
Still, Cornell said the trend of shoppers avoiding trips to stores has worked in the discount retailer’s favor, and it expects to emerge from the coronavirus pandemic having gained market share.
Since its fiscal first quarter began Feb. 2, Target’s same-store sales have risen more than 7%, the retailer said. The gain, which compares with an increase of 1.5% in the fiscal fourth quarter, is the result of a doubling of its online sales, partially offset by declines inside its nearly 1,900 brick-and-mortar stores.
In an interview with CNBC’s “Squawk Box,” Cornell said Target is trying to figure out if customers’ new shopping patterns are here to stay.
“We are spending a lot of time trying to understand how the pandemic is going to…