Earnings season is in full swing on Wall Street, and a number of companies are checking in with solid results. Among the companies that fall into that camp is Target, which is celebrating a massive spike in traffic. The retail giant’s CEO is pretty clear on why that’s the case.
Target CEO Brian Cornell had absolutely effusive praise for the state of the US economy. The retail giant has just reported its best same-store sales growth in 13 years. Cornell provided some insight into the catalysts for the stellar results in a call with analysts.
“There’s no doubt that, like others, we’re currently benefiting from a very strong consumer environment — perhaps the strongest I’ve seen in my career,” he said, later adding: “I think what you’re seeing right now from a macro basis is well-run retailers with strong balance sheets that generate cash … are winning right now. And there’s obviously others right now that can’t afford to invest in their store experience, or build capabilities or drive differentiation. And they’re giving up share. So there’s clearly winners and losers. We certainly think we’re migrating to the winners column.”
In non-financial speak, the economy is humming along, people are spending money again, and Target is one of the many fortunate beneficiaries. Randal Konik, an analyst with Wall Street firm Jefferies, recently broke down what he’s seeing in a research note to clients.
“The consumer is the strongest since ’99,” he said. “Companies are managing inventories very well, digital investments are paying off, real estate is being rationalized … Christmas will be much better than people think.”
Signs point to the good times continuing to roll. We’ll keep our fingers crossed that it comes to fruition. In the meantime, we’re going to stop and smell the roses that have bloomed in the wake of all of the positive economic news.
Read more: CNBC