Target posted third-quarter earnings that beat analysts’ estimates after US sales grew faster than the company expected
Earnings amounted to 54 cents a share, excluding some items, the company. Analysts had predicted 47 cents on average, according to data compiled by Bloomberg.
US comparable-store sales increased 1.2 per cent in the period, which ended 1 November, helped by online orders. Target had projected growth of as much as one per cent.
The results signal that the company is rebounding under new CEO Brian Cornell, a former PepsiCo executive who took the reins at Target in August. He has been working to boost US traffic, repair the company’s botched expansion into Canada and regain shoppers’ trust after hackers stole millions of customers’ credit-card numbers last year.
“Expectations are rising, so CEO Brian Cornell’s ability to outline a credible plan for sustainable improvement will be key,” Peter Benedict, an analyst at Robert W. Baird & Co., said in a note before the results were released.
The latest numbers mark a turnaround from earlier this year, when Target was offering heavy discounts and still struggling to get customers into stores, said Brian Yarbrough, an analyst for Edward Jones & Co. in St. Louis. “Now they’re driving traffic,” he said.
Third-quarter net income rose more than three per cent to $352 million, while revenue climbed about 2.8 per cent to $17.7 billion.
Bloomberg News, edited by ESM
