Target beats quarterly forecasts, shares jump
Shares in Target Corporation surged on Wednesday, after the big box retailer comfortably beat quarterly profit forecasts.
Target Corp.
$154.99
11:05 13/11/24
The Minneapolis-based firm said sales in the three months to 28 October were $25bn, down 4.3% on the same quarter a year previously and in line with expectations. Like-for-like sales fell by 4.9%, as demand faltered in discretionary categories.
Operating income jumped 29% to $1.3bn, however, as the cost of sales fell. Adjusted earnings per share were $2.10, up 36% and above the high end of the retailer’s guidance range.
Target said the improvement in EPS reflected "disciplined inventory and expense management". Inventory at the end of the quarter was 14% lower than the previous year.
As at 1245 GMT, the stock had jumped 14% in pre-market trading on Wall Street.
Brian Cornell, chief executive, said: "In the third quarter our team continued to successfully navigate our business through a very challenging external environment.
"While sales were consistent with our expectations, EPS come in far ahead of our forecast."
Looking to the crucial fourth quarter, which includes the Thanksgiving and Christmas holidays, Target is forecasting comparable sales in a "wide range" around a mid-single decline. Adjusted EPS is expected to come in between $1.90 and $2.10.