Discount retailer Target (NYSE:TGT)reported that its third-quarter sales jumped 13% and forecast stronger-than-expected holiday sales in the current fourth quarter.
Target said its sales got a boost as shoppers bought Halloween costumes and stocked up on back-to-school supplies during the July through September period.
The big-box retailer also raised its fourth-quarter forecast, predicting comparable sales could rise at between a high-single digit and low double-digit pace in the holiday period.
Target’s revenue rose 13% to $25.65 billion U.S. from the same period a year ago, slightly above analysts’ expectations of $24.78 billion U.S.
Comparable sales in the third quarter grew 12.7%, as shoppers made more trips to Target’s stores and visits to its website. That exceeded the 8.2% increase that analysts expected, according to Refinitiv data.
Store comparable sales increased 9.7%, while digital comparable sales grew 29%. Target said sales through its same-day services — which includes curbside pick-up service, drive up, in-store retrieval and home delivery — grew nearly 60% in the quarter.
Target began its first holiday deals in early October and has pledged price matches for early birds. The company is hiring 100,000 seasonal employees, filling 30,000 new supply chain roles and giving about five million extra hours to current staff.
Target’s shares are up about 51% this year. Shares closed at $266.39 yesterday (November 16), bringing the retailer’s market value to $130.01 billion.