Target’s Cat & Jack Private Label Hits First-Year Sales of $2 billion
Target continues to expand its private-label apparel business with its Cat & Jack children’s line having posted $2 billion in sales in its first year through July, double the original forecast, company executives told analysts as it reported quarterly results.
The company reported strong sales for the Cat & Jack, Pillow Fort (home décor, also introduced in July 2016) and Isabelle Maternity apparel (launched in May) brands, said Chief Merchandising Officer Mark Tritton said.
The company added Cloud Island (infant bedding, apparel, décor, plush toys) in July and will bring A New Day (women’s apparel and accessories), Goodfellow & Co. (men’s clothing and accessories, shoes), Project 62 (home goods) and JoyLab (women’s athletic apparel) into the mix in the fall.
Target, which began development on the private label program 10 months ago, expects to have more than a dozen brands in place by late 2018 and left the door open for categories outside apparel and home. The private label lines have been “well received” but Target is “just now getting into the heart” of the product launches, said CEO Brian Cornell.
“The strength of providing differentiation, exclusivity and therefore preference for Target is applicable to many different areas,” Tritton said. “We are looking at many different categories and opportunities and we have plans in place.”
Meanwhile, Target’s net income in Q2 ended July 29, fell 1.2%% to $672 million despite a 1.6% increase in sales to $16.4 billion, with a 1.3% gain in same-store sales.
Mark Tritton, Chief Merchandising Officer, 612- 304-6073, email@example.com