Shares of Target Corp (NYSE: TGT) surged to record highs on Wednesday after the retail giant reported better than expected earnings and revenue, extending an impressive growth streak that has been underpinned by booming digital sales.\r\n\r\n \r\nQ2 Earnings Summary\r\n\r\n \tEarnings: $1.82 per share\r\n \tRevenue: $18.42 billion\r\n \tSame-store sales growth: 3.4%\r\n\r\nTarget posted another quarter of market-beating returns, with revenues hitting $18.42 billion. Company profits surged 17% to $938 million, which translates into $1.82 per share. Analysts in a median estimate were calling for revenue of $18.34 billion and earnings per share of $1.62.\r\n\r\nSame-store sales also jumped 3.4% versus 2.9% expected. Growth in this category was largely driven by same-day fulfillment services, which contributed 1.5 percentage points. Target\u2019s same-day fulfillment services include order pick up, drive up and Shipt, a same-day delivery business.\r\n\r\n\u201cThese options offer speed, convenience and reliability,\u201d Target CEO Brian Cornell said on the earnings call. \u201cAnd as a result, they\u2019re quickly becoming the fulfillment choices for our guests. And most importantly, because these options leverage our existing in-store infrastructure, technology and teams, same-day fulfillment delivers outstanding financial performance as well.\u201d\r\n\r\nMeanwhile, digital sales continued to surge, rising 34%. E-commerce revenue rose by 42% during the previous quarter.\r\n\r\nE-commerce and same-day deliveries will likely be the linchpin for Target\u2019s future growth as it tries to compete with Amazon. Store pickups appear to be growing in popularity as consumers opt out of longer shipping times. If this trend continues, Target is likely to benefit.\r\n\r\n \r\nTGT Stock Hits Record High\r\nTarget\u2019s share price blew past $100 on Wednesday for the first time, gaining as much as 21% in the process. By comparison, the large-cap S&P 500 Index was up 0.9%, with its consumer discretionary component having gained 1.8%.\r\n\r\nTGT peaked at $103.32 on Wednesday. It would eventually close at $103.00, having gained 20.4%.\r\n\r\n\r\n\r\nThe record surge pushed Target\u2019s total market capitalization north of $52.8 billion.\r\n\r\nTarget\u2019s share price has been outperforming the broader market for all of 2019. The stock has returned 35% year-to-date, compared with 22% for the S&P 500\u2019s consumer discretionary index.\r\n\r\n \r\nConclusion\r\nRetail\u2019s digital transformation has separated the winners from the losers. The likes of Walmart and Target are benefiting thanks to major investments in e-commerce while department stores like Macy\u2019s, Kohl\u2019s, and J.C. Penny have struggled to keep pace. Target stands to gain even greater market share as the digitization trend intensifies.\r\n\r\nDisclaimer: Author holds no investment position in Target at the time of writing.