Retail

Target Beats Q3 On Back-To-School Sales

Retailing giant Target said Wednesday that it beat quarterly profit expectations, as the firm saw a surge in back-to-school spending, along with a boost in sales conducted online, Reuters reported.

Target’s bottom line grew by 11 percent year over year in the quarter, with $1.04 in EPS excluding items besting the Street at $0.83 a share. The operating line fell 6.7 percent to $16.4 billion, and same-store sales were down 0.2 percent — quite a bit better than the consensus that had called for a 1 percent decline.

Target management said on the conference call that store traffic had improved during the quarter and that sales trends were also better, to the tune of 1 percent in the quarter. The firm also singled out demand for Apple products as picking up pace in the quarter, with advance orders up triple the level than had been seen at this time last year.

Target also said that digital sales were up by 26 percent, with a momentum in categories such as baby products and health-related items. Management expressed confidence with the overall inventory position headed into the holiday season.

Shares rose more than 6.4 percent on the day to more than $76. Looking ahead, Target said current fiscal year earnings should be in the range of $5.10 to $5.30 a share, up from previous estimates of $4.80 of $5.20.

——————————–

Latest Insights: 

The Payments 2022 Study: Building A High-Performance Payments Team For Fraud Detection, a PYMNTS collaboration with Stripe, examines how digital platforms of all sectors and sizes plan to develop their anti-fraud teams as part of their their broader growth and development strategies. Drawing from an extensive survey from approximately 250 payments heads at digital platforms in the U.S. and abroad, our study analyzes how poor anti-fraud capabilities can harm platforms’ long-term growth strategies, and how they can build high-performing teams to tackle these challenges.

Click to comment

TRENDING RIGHT NOW

To Top