Target Corp yesterday reported a bigger-than-expected increase in quarterly net profit and raised the low end of its fiscal-year forecast as revenue got a boost from strong demand for products at the centre of the retailer’s turnaround plan.
Under Chief Executive Officer Brian Cornell, Target has focused on promoting a narrower set of products, or “signature categories,” that include apparel and items for children, babies and health and wellness.
“The third quarter marked the fourth consecutive quarter in which we have grown traffic, and Target’s sales growth continues to be led by our signature categories,” Cornell said in a statement. Comparable sales in these categories grew more than 2.5 times faster than the company average in the third quarter ended on November 1, Target said
The fourth-largest US retailer raised the low end of its fiscal-year earnings forecast to $4.65 a share from $4.60. It kept the high end at $4.75. The Minneapolis-based company’s shares were down 1.3% at $71.97 in premarket trading. At Tuesday’s close, the stock had fallen nearly 4% this year.
Excluding special items, earnings rose to 86 cents per share in the third quarter from 79 cents a year earlier.
Analysts on average were expecting a profit of 85.9 cents, according to Thomson Reuters I/B/E/S.
The company narrowed its after-tax loss from discontinued operations in Canada to $73mn from $174mn a year earlier.