Target Corp is ready for the holidays.
Big box retailer based in Minneapolis quarterly disclosure income Wednesday before market open, improving in top and bottom returns on strength across all five core categories. Target Therefore, issued Q4 guidance, saying it is ready for holiday Season.
“The continued strong growth we are seeing in our business, quarter after quarter, is testament to the passion and commitment our team brings to serving our guests and results. As a result, we have built trust with them.” Brian Cornell, Target’s president and chief executive officer, said in a statement. “After growth of nearly 21% a year ago, our total increase of 12.7% in the third quarter was driven entirely by traffic and reflects continued strength in in-store sales, same-day digital fulfillment and double-digit growth in all five core commodity categories. With a solid inventory position moving towards the pinnacle of holiday This season, our team and our business are ready to serve our guests and ready to provide continued strong growth, through the holiday season and beyond. “
Other key metrics include comparable in-store sales, which rose 9.7% in the three-month period ended October 30. This is higher than growth of 9.9 % at the same time last year. Comparable digital sales grew 29% year-over-year, peaking at 155%rcent growth last year. Total revenue for the quarter was $25.6 billion, up from $22.6 billion a year earlier. Service of the day – including BOPIS, drive-up and Shipt – grew by nearly 60% in the quarter, on top of last year’s 200% growth.
The company posted $1.48 billion in profit as a result, compared with $1.01 billion last year.
Target also enhanced its fourth-quarter holiday guidance. The company now predicts comparable sales will increase in the high one-to-low double digits, compared with previous guidance for high single digits. The retailer said it continues to expect full-year operating profit margin of 8% or higher.
However, Target’s stock fell more than 3% in the hours before Wednesday’s market. Some investors worry about continued supply chain troubles and inflationary pressures ahead of the key holiday shopping season.
“We remain cautious about supply chain difficulties during the holiday season, though [Target] stated that they are confident with inventory levels,” reads a note from Jane Hali & Associates. “Across our in-store and online stores, we’re seeing some products out of stock, but we’re also seeing ongoing replenishment.”
The research investment firm rates Target’s stock as “neutral.”
Target has more than 1,900 brick-and-mortar stores across the U.S. The company ended the quarter with $11.5 billion in long-term debt and $5.75 billion in cash and cash equivalents. Target’s shares closed up 1.12% to $266.39 on Tuesday, up 63.3% year-over-year.
https://wwd.com/business-news/financial/target-earnings-holidays-1234997006/ | Goal Continued Development; Updated Holiday Guide – WWD