Based on the facts and figures that were
issued by Target for their third quarter, it is going to be a very merry
Christmas for shareholders in the company. For the second quarter consecutively
Target, smashed expectations by Wall Street analysts. The company blew sales,
earnings, same store sales, and gross profit margin projections out of the
water, with online sales surging in the quarter by over 30%. Alongside their
great performance this quarter, Target also meaningfully increased their full
year guidance, which was great news for shareholders.
In pre-market trading shares in the company spiked almost 8% indicating that
the stock will begin trading at a record high. The key figures and statistics
that has driven this huge increase in share price, are outlined below against
Wall Streets estimates.
- Same-store sales: 4.5% increase vs. 3.5% estimated increase (Target guidance: up 3.4%)
- Total sales: $18.7 billion vs. $18.22 billion estimate
- Gross profit margin: 29.8%vs. 29% estimate
- Earnings per share: $1.36 vs. $1.19 estimate (Target guidance: $1.04 to $1.24 a share)
- Full-year earnings guidance: $6.25 to $6.45 vs. estimate $6.18 a share (Target prior guidance: $5.90 to $6.20 a share)
With these exceptional
results, Target is increasing its market share in the retail sector, and the
companies stores are progressing into a new era. CEO of the company Brian
Cornell confirmed in a call with analysts that their remodeled stores, are one
of the key factors that have boosted sales. There is a whole new host of
products and food brands that have partnered with the store. With new lines of
apparel, Target saw same store sales pop over 10% in the quarter, alongside
food same store sales rising almost the same.
When a retailer the size of Target puts all these new initiatives together, and
combine them with same day delivery services, a large number of people are
opting to shop online which has also shown the company a huge increase to
online sales.
And same-day delivery services are boosting those inclined to shop online.
Yuto
Haruki – NA
International
info@nainternational.com
Stock Brokerages Japan 