Target (TGT) executives addressed the health of the American consumer, the importance of the retailer's same-day services, and more in Wednesday's second-quarter earnings call.

Target's Q2 results 澳洲幸运5官方开奖结果体彩网:surpassed estimates, sending its stock up 12% as of 11:30 a.m. ET Wednesday. The retailer also lifted its outlook for full-year 澳洲幸运5官方开奖结果体彩网:earnings per share (EPS), but said it expects 澳洲幸运5官方开奖结果体彩网:comparable store sales on the 𓂃low end of its prior projection of flat💮 to 2% growth.

Discretionary Spending Outlook

Target Chief Commercial Officer Rick Gomez said that the retailer sees "a consumer that is still willing and able to spend," even while many Americans focus on value and making the most of their budgets.

Target's 澳洲幸运5官方开奖结果体彩网:efforts to lower prices on thousands of popular products over the summer helped drive sales, 澳洲幸运5官方开奖结果体彩网:Chief Executive Officer (CEO) Brian Cornell said. Cornell added that Tar🐲get is "particularly encouraged to see discretionary category trends improve," noting that categories like apparel and beauty saw solid growth in the quarter.

Comparable Sales Return To Growth

After comparable sales declined and 澳洲幸运5官方开奖结果体彩网:sent Target's stock lower in the first quarter, they rose 2% in Q2, which executives said wasℱ driven entirely by higher foot traffic, as average ticket and sales prices ཧdropped slightly year-over-year.

Gomez said that Target customers are showing a willingness to spend when they find interesting products at the right price. Gomez added that Target is seeing growth in certain home categories like candles and throw pillows, "because we're offering an inexpensive way to freshen up the look of your home."

Same-Day Services Becoming Vital

Cornell said Target's same-day services now make up more than two-thirds of its digital sales, split between curbside pickup and same-day delivery from the retailer's new paid Target Circle 360 rewards program.

Both drive-up orders and Target Circle 360 same-day delivery sales grew year-over-year by about 14% in the quarter, with roughly $2 billion in sales from the drive-up service, which Cornell said has been a "stellar performance for us for many years now." Executives also said their data shows that Target customers who use either of those services at least once are much more likely to spend more time shopping in store going forward.

Walmart (WMT) also emphasized the 澳洲幸运5官方开奖结果体彩网:im𝄹portance of speed and convenience in its earnings call last week, as it and Target both look to compete with the online retail dominance of Amazon (AMZN), which 澳洲幸运5官方开奖结果体彩网:delivers billions of packages either same-day or in one day.

Update on Target Circle Revamp

After launching a revamped version of the company's Target Circle rewards program earlier this year, including the 澳洲幸运5官方开奖结果体彩网:paid Target Circle 360 tier to compete with Walmart+ and Amazon Prime, executives said Wedn𒅌esday that "hundred♛s of thousands" of customers have signed up to the paid tier.

Cornell said that Target started the revamp with over 100 million Target Circle rewards members, and said the retailer saw roughly 2 million new customers sign up during Target Circle Week, its rival to 澳洲幸运5官方开奖结果体彩网:Amazon Prime Day.

Gomez said that adding more Target Circle members gives the retailer va﷽luable data a🍌bout its customers, which it can use to generate more accurately personalized ads and promotions.