On Wednesday, Target reported fiscal third-quarter results that surpassed expectations. The company won market share by turning shoppers’ pandemic habits into lasting gains. Based on the information provided by the company, it grabbed market share across all of its core categories.
Importantly, year to date, the discount retailer won $6 billion in market share, with $1 billion in share gains coming during the third quarter. People should take into account that sales online and at stores open at least a year rose 20.7% during the latest quarter. Notably, comparable digital sales increased by 155%, while same-store store sales rose 9.9%.
It is worth noting that shares were up about 2% in premarket trading on Wednesday.
Interestingly, in spite of strong results, the company declined to provide an outlook. As a reminder, Target withdrew its forecast during the first quarter due to the coronavirus pandemic. Let’s have a look at the results to learn more about the Target Corporation.
Importantly, earnings per share surpassed expectations. In the third quarter revenue reached $22.63 billion. Same-store sales rose 20.7% in the latest quarter.
According to the company, its third-quarter net income increased to $1.01 billion, or $2.01 per share, from $714 million, or $1.39 per share a year earlier. Interestingly, excluding items, the discount retailer earned $2.79 per share and this result surpassed expectations.
The total revenue of Target grew 21% to $22.63 billion from $18.67 billion in 2019.
Target and main findings
Interestingly, Target’s nearly 1,900 stores remained open as an essential retailer that could sell a wide range of products. In recent months, even as shopping mall competitors have opened again, the company was to retain customers and won more of their wallets.
It is worth noting that customers shopped more frequently with Target in the third quarter. Notably, combined transactions in Target stores and on its website were up 4.5% year over year. The average ticket grew 15.6% in the third quarter.
Moreover, sales in all of the company’s merchandise categories were higher in the third quarter than a year earlier.
The company is working hard to please its customers. For example, last month Target made the decision to devote twice as many parking spots to curbside pickup. Thanks to such decisions, the company will be ready to serve more customers in a more safe as well as convenient manner. Target understands the importance of customer service ahead of the holiday season.
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