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MINNEAPOLIS — Target Corp. posted third quarter earnings Wednesday that beat estimates on U.S. sales, which grew faster than expected, and showed improvement at the retailer’s Canadian stores.
Target Corp. posted third quarter earnings Wednesday that beat estimates on U.S. sales, which grew faster than expected, and showed improvement at the retailer’s Canadian stores.
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| Brian Cornell |
Profits rose 2.7% in the three months to November 1. The company said it earned $352 million in the third quarter, or 55 cents a share, compared to $341 million, or 54 cents a share, a year ago. Revenue rose 2.8% to $17.7 billion.
Sales at U.S. stores open at least a year increased by 1.2%, aided by online sales. Target had been expecting comps of 1% or less. The number of transactions in U.S. stores declined 0.4% from a year earlier but approached levels last seen before a well-publicized data breach during last year’s holiday shopping season that suppressed traffic.
Breach-related expenses were $12 million in the third quarter and now have cost the company $248 million, minus a $90 million insurance receivable.
"We’re encouraged by the improving trend we’ve seen in our U.S. business throughout the year, and our fourth quarter plans are designed to sustain this momentum," said Brian Cornell, Target’s chairman and chief executive officer. "The entire company is energized as we approach the peak of the holiday shopping season, and we are looking forward to delivering an outstanding store and digital experience to our guests."
Target opened six net new stores in the United States and three net new stores in Canada in the third quarter. Year to date, the retailer has added eight net new stores in the United States and nine net new stores in Canada, bringing its North American store count to 1,934.
