Target 1Q15 Earnings Call notes

particularly strong results in March

“While we enjoyed a healthy pace of sales throughout the first quarter, we saw particularly strong results in March, as weather warmed across many parts of the country and Easter timing moved seasonal sales into the month.”

Lilly Pulitzer collection was so great our digital channels couldn’t handle it

“In April, we were thrilled with the overwhelming demand for items from our collaboration with Lilly Pulitzer, with most of the collection selling out in the first few days. We were disappointed, however, that our digital channels were not able to properly accommodate the surge in traffic at the time of the launch’

Disney’s PR machine is unstoppable

“like moviegoers, we’re already excited about the December movie release from the most famous license of them all, Star Wars. Earlier this month, as part of the worldwide ‘May the 4th Be With You’ event, we allowed Darth Vader and Yoda to take over the homepage, offering special online-only deals on Star Wars licensed product. We’ll provide more details on our next earnings call but for now I can assure you that Star Wars fans will find plenty of reasons to visit our stores and this year.”

Digital sales grew 38%

“Digital channel sales increased 38% in the first quarter on top of more than 30% growth in the first quarter last year. Digital channels drove about 80 basis points of our first quarter comparable sales increase in line with our fourth quarter experience.’

Inventory increase is intentional

” I want to comment on our inventory position at the end of the quarter which was about 9% higher than a year ago. This increase was intentional and reflects some decisions we’ve discussed in the past calls.”

No impact in oil industry heavy states

“we didn’t see any correlation between what you just referred to, changes in the oil and gas industry, and an influence on our comps. Obviously, like everyone else, and this happens every single year, weather did impact regional performance.’