Target Profit Surges After Strong Back-to-School Season

Getty Images              Target is facing challenges in its food business among other areas

Target Corp. (NYSE: TGT) released its fiscal third-quarter earnings report before the markets opened on Wednesday.

Target's relatively upbeat results add to evidence that the retail industry is headed into the holiday shopping season with a tailwind.

Target exceeded Wall Street expectations for the third quarter, and has increased its annual profit outlook. 7 analysts said to HOLD the shares of the company. "We also continued to gain market share in key Signature Categories and saw unexpectedly strong sales in the Back-to-School and Back-to-College season".

Target's Q3 sales decreased 6.7% to $16.4 billion, down from $17.6 billion a year ago, but same-store e-commerce sales grew 26%, contributing 0.7 percentage points to same-store sales growth.Same-store sales declined 0.2%, near the high-end of the guidance range of flat to down 2%. Street analysts have a consensus EPS projection of $0.83 for the current quarter. Online sales climbed 26%, helped in part by a one-day promotion over the summer that gave shoppers 10% off most items online and in its stores.

Under Cornell, Target has been trying to reinvigorate itself to restore its cheap-chic status.

But it's also focusing on value. The top target is presently $89 and the lowest target has the stock reaching $60 within the year.

"As we move into the biggest quarter of the year, we are pleased with our inventory position", Cornell said in a statement.


Target, No. 22 in the Internet Retailer 2016 Top 500 Guide, said online sales accounted for 3.5%, or $575.4 million, of sales during the fiscal third quarter ended October 29, up 21.0% from $475.6 million during the same period previous year, when online accounted for 2.7% of sales.

Results have improved from recent quarters, when competition from online rivals like Amazon.com Inc (AMZN.O) and slower sales of smaller items like electronics and food hurt Target's earnings. That's well above the 83 cents per share that analysts polled by Zacks Investment Research called for.

All of the income growth was driven by almost a $400 million reduction in selling and administration expenses. Target Corp. The business earned $16.44 billion during the quarter, compared to the consensus estimate of $16.30 billion.

Target joins other retailers who've had strong third-quarter performances. This figure includes excludes results from stores recently opened or closed. Target now expects full-year adjusted earnings per share of $5.10 and $5.30, up from a prior forecast of $4.80 to $5.20. And it now expects adjusted earnings per share of $5.10 to $5.30, up from previous guidance of $4.80 to $5.30.

The bottom line (on a per-share basis) has more or less made progress for years, even with the company's multiple stumbles.

Target shares surged $6.56 (+9.18%) to $78.00 in premarket trading Wednesday.

According to Zacks Investment Research, "Target Corporation operates large-format general merchandise and food discount stores in the United States, which include Target and SuperTarget stores". If you are reading this story on another website, that means this article was illegally copied and re-published to this website in violation of US and global copyright law.

Related News:

  • Arrests in Greece after protest during Obama visit

    The entire site was closed to the public for the day for Obama's visit, which has taken place amid stringent security measures. But he had this message to leaders and people around the globe: "We can't look backward for answers, we have to look forward".
    Hundreds of Iraqis line up for food in Mosul after IS battle

    Hundreds of Iraqis line up for food in Mosul after IS battle

    The Kurdish Peshmerga and Shia militia are also working with Iraqi forces under the direction of Prime Minister Haidar al-Abadi. Mosul has been under the tight control of the extremists for more than two years and is still home to some 1 million civilians.
    Israeli minister: Trump's victory ends prospects of Palestinian state

    Israeli minister: Trump's victory ends prospects of Palestinian state

    Meanwhile, Arab-Israeli lawmaker Isawi Frej, of the left wing Meretz party, called Trump's victory a worldwide wake-up call. Another of Netanyahu's ministers, Tzahi Hanegbi, said he was hopeful that Trump would follow through.
  • Iowa lawmaker proposes

    Iowa lawmaker proposes "suck it up, buttercup" bill to silence "annoying" protesters

    He says after seeing the recent protests, he'd like to clarify the code when it comes to protesters on an interstate. But people have to be able to sit down and have open dialogue and honest communication with one another.
    Huge explosion rocks Kabul, at least four dead

    Huge explosion rocks Kabul, at least four dead

    Eyewitnesses said a security forces vehicle was targeted close to the Ministry of Defence compound in Pul-e-Mahmood Khan area. The victims were not intelligence officers, nor did the bomber board the bus, Afghan officials said.
    400 million accounts on adult sites breached

    400 million accounts on adult sites breached

    While the identity of the hackers is unclear, it would appear as if Friend Finder was extremely vulnerable to such an attack. The company didn't learn its lesson from a security breach it suffered a year ago , where 4 million accounts were exposed.
  • Trump and the Golden Pheasant

    Trump and the Golden Pheasant

    The peasant's name is Little Red and thanks to a mop of bright yellow hair on his head, he has been deemed Trump's doppelganger. He's more colorful than the other birds because he is very health.

    Atlanta Braves: Braves Add Veteran Knuckleballer R.A. Dickey

    The Braves have also talked to the agents for several free-agent catchers including Jason Castro, Nick Hundley and Matt Wieters. Colon had 44 wins for the Mets over the last three seasons, and before that was an 18-game victor for Oakland at age 40.
    Microsoft Tips Black Friday Deals on Surface Book, Pro 4

    Microsoft Tips Black Friday Deals on Surface Book, Pro 4

    Another feature worth noting are backlit keys on the keyboard and the large trackpad with multi-touch and gesture recognition. It runs on Windows 10, packs Windows Office 360 and comes with the latest protection features of Microsoft's platform.
  • Bernie Sanders Says Donald Trump Opponents Need to 'Fight Back'

    Bernie Sanders' wife, Jane, dismissed speculation Friday that her husband was considering another bid for the White House in 2020. Trump's victory". "We are not going to allow women to be insulted and attacked and have their rights taken away from them'".

    Obama arrives in Greece at start of his final foreign tour

    The 44th president will conclude his trip with a stop in Peru for a summit of the Asia-Pacific Economic Cooperation forum (APEC). Extensive violent demonstrations greeted the last official visit to Greece of a sitting US president, by Bill Clinton in 1999.
    Mute button: Twitter has finally taken a major step in tackling abuse

    Mute button: Twitter has finally taken a major step in tackling abuse

    Twitter received criticism multiple times as it failed to protect its users from cyberbullying and harassment on its platform. Furthermore, it has adopted its policies to better define the unacceptable discrimination which can be flagged up by users.


Most liked

Toner insists All Blacks could have some doubts
Whitelock said they had just undergone a "good honest review" of the defeat in Chicago "rather than going sideways with it". Schmidt will recall all his big guns to host New Zealand , while the visitors are expected to be far stronger themselves.

Vikings Sign Kai Forbath To Replace Blair Walsh
He missed a number of field goals and extra point attempts, and the result was the Vikings cut him Tuesday. I think we gave him a lot of opportunities. "He's been accurate", Zimmer said.

Barcelona's whopping new sponsorship deal is one of the biggest in history
According to this year's Deloitte Football Money League , the richest club in the world was Real Madrid, followed by Barcelona and Manchester United .

Facebook, Google Take Steps To Confront Fake News
Without revenues in building and operating fake news websites, there would be no reason to waste time on promoting misinformation. Also a spokeswoman from Google said that the company's policy update was planned before the presidential election.

Trump Election Spurs 'Panic' In Local Immigrant Communities
US President-elect Donald Trump is demanding that any of his supporters who are harassing people or destroying property "stop it". Earlier in the day, House Speaker Paul Ryan told Jake Tapper on CNN , "I think we should put people's minds at ease", Ryan said.

Gronkowski has punctured lung
So, I went back to watch that fourth quarter field goal and, well, Carroll is kind of right about the energy level. Although this one-yard finish didn't go in New England favor this time, it was still an exciting game to watch.

Floyd Mayweather sick and exhausted of comparisons to Conor McGregor
This past weekend saw Conor taking a big win, and gaining a second UFC championship belt making the first fighter to do just that. The two fighters were going back and forth through social media for weeks. "Now, I'm going to give you my full opinion".

Apple Saves the Peach Emoji That Looks Like a Butt
The third beta version of the software landed earlier this week to registered developers and public beta testers. The TV app has been redesigned to make it simpler and the Settings menu has undergone a few changes.

Giuliani is a leading candidate to be Trump's secretary of state
Giuliani said Monday night at a Wall Street Journal election forum that he would not be going to the Justice Department. Former US House of Representatives Speaker Newt Gingrich has also been reported as a possible secretary of state .

Odell Beckham, Giants get loose in an epic dance-off to Migos
The Giants may have been aware of this tactic since the Patriots used it against them at the end of Super Bowl XLVI. All four of those interceptions have come in the last three games, all of which the Giants have won.

Airstrikes hit Syria's Aleppo after 3-week pause
The Britain-based Syrian Observatory for Human Rights said the strikes killed at least three people and hit four other areas. Al-Nusra Front is the old name of al-Qaeda's former Syrian affiliate group which is now known as Fateh al-Sham Front.

Snapchat said to confidentially file for IPO
With annual revenue under $1 billion now, Snap is able file its Form S-1 with the SEC confidentially under the JOBS Act. The company filed paperwork for its IPO before the presidential election, Dow Jones reported .

Google releases app to digitize boxes of old photo prints
PhotoScan enables users to scan old photos in various formats, and also, where necessary, to restore them to their former glory. This simple method could help safeguard memories that would otherwise be left to deteriorate in boxes over time.

Nigel Farage: British Tories Have Angered Donald Trump
May certainly will not be welcoming this opportunity for UKIP to bask in the reflected glory of a Trump victory, the report said. Chuka Umunna has told LBC that the idea of Nigel Farage being central to the UK's relationship with the U.S. is "ridiculous".

Turkey issues USA travel advisory in wake of anti-Trump protests
More than 110,000 people have been sacked or suspended in the crackdown that followed the putsch, and some 36,000 arrested. An EU official said the bloc's leaders would review the situation in Turkey at a summit scheduled for December 15-16.