More robust growth ahead: Target CFO
Target posted earnings that beat analysts' expectations Wednesday, and its chief financial officer sees more robust growth ahead.
The retailer posted fiscal second-quarter earnings of $1.22 per share, up from 78 cents in the year-earlier period. Revenue rose to $17.43 billion from $17 billion the previous year.
Analysts expected Target to post earnings of $1.11 per share on $17.4 billion in revenue, according to a consensus estimate from Thomson Reuters.
While digital sales for the quarter increased 30 percent, the company's goal for the year is 40 percent growth.
However, CFO John Mulligan, who is also the incoming chief operating officer, told CNBC's "Power Lunch" that he is "really pleased" with the company's online growth.
"We cycled against some incredibly strong promotions last year, particularly in electronics online. We were using that to bring the guests back in the stores," he said.
"We'll bring great product online and continue to integrate our online business with our stores, and all of that will continue to drive robust growth for our digital channel."
The retailer also announced in June that it is shedding its pharmacy business, with CVS acquiring it for about $1.9 billion. CVS will continue to operate the pharmacies and clinics within Target locations.
Mulligan called the drugstore operator a great partner that will also help drive traffic into the stores.
"This is an opportunity for us to provide a better service to our guests and bring more of them in our stores so they can be delighted by the products that we offer."
Meanwhile, Mulligan brushed aside any talk of becoming an heir apparent to CEO Brian Cornell now that he'll be overseeing the stores, supply chain and properties when he becomes COO on Sept. 1.
"The first order of business is concentrating on what I've got in front of me. We're excited about bringing the core of our operations together," he said. "I'm not worried about Brian leaving any time soon. He's doing a great job, and we're thrilled he's here."
—CNBC's Matthew Belvedere and Reuters contributed to this report.