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MINNEAPOLIS — Target Corp. on Wednesday said that its profit rose 56% to $549 million in the third quarter. Sales increased 2.1% to $17.6 billion as same-store sales increased by 1.9% from a year earlier.Target Corp. on Wednesday said that its profit rose 56% to $549 million in the third quarter. Sales increased 2.1% to $17.6 billion as same-store sales increased by 1.9% from a year earlier.
“The third quarter marked the fourth consecutive quarter in which we have grown traffic, and Target’s sales growth continues to be led by our signature categories: style, baby, kids and wellness,” Target chief executive officer Brian Cornell said in a statement.
Target reported third quarter adjusted earnings per share of 86 cents, above the midpoint of its forecast of between 79 cents and 89 cents.
Target raised the low end of its fiscal year earnings per share forecast to $4.65 from $4.60. It maintained the high end at $4.75.
E-commerce was a bright spot, with online and mobile sales increasing by 20% and adding 0.4 percentage points to comparable sales growth.
Target said it allocated $1.3 billion in the three months ended November 1 to stock buybacks and dividend payouts to its stockholders.
The company in recent months has freed up capital by exiting Canada and selling its in-store pharmacy business to CVS Health.
Under the leadership of Cornell, who was hired in August 2014, Target has focused on rebuilding its “signature” categories of wellness, style, kids and baby. Cornell also has also invested in omnichannel initiatives, expansion of the company’s loyalty program and experimentation with smaller stores.