Target (NYSE:TGT) earnings and sales trounced analysts’ estimates, marking a bright spot in retail after weak reports from department store chains J.C. Penney (NYSE:JCP) and Kohl’s (NYSE:KSS)
The big-box retailer also raised its profit outlook for the full year, ahead of the all-important holiday shopping season.
CEO Brian Cornell said the results are “further proof of the durability” of Target’s investment strategy, as the retailer has an “unmatched suite of easy and convenient fulfillment options.”
Net income during the period ended Nov. 2 grew to $714 million, or $1.39 per share, compared with $622 million, or $1.17 per share, a year ago. Excluding one-time items, Target earned $1.36 per share, beating expectations for $1.19 a share, based on an analyst survey.
Total revenue grew 4.7% during the quarter to $18.67 billion from $17.82 billion a year earlier, beating expectations for $18.49 billion.
Target now expects full-year adjusted earnings per share to fall within a range of $6.25 to $6.45, compared with a prior estimate of $5.90 to $6.20. Analysts had been calling for earnings per share of $6.18.
The company said digital sales surged 31% during the quarter, with its same-day delivery options including buy online pick up in store and curbside pickup accounting for 80% of digital sales growth.
Target said traffic during the third quarter was up 3.1%. The average transaction amount grew 1.4%.
For the fourth quarter, Target said it expects same-store sales to be up 3% to 4%.
Shares hurtled skyward $13.64, or 12.3%, to $124.49