Target: profit rises but misses consensus
(CercleFinance.com) - Target reported a rise in net quarterly profit on Tuesday, although its results were lower than expected as the US discount retailer saw costs and investments increase.
Target said profit was 622 million dollars, or 1.17 dollar per share, for its third quarter to 3 November, compared with 478 million dollars, or 87 cents per share, a year earlier.
Adjusted earnings per share from continuing operations reached 1.09 dollar, while analysts, on average, had been expecting 1.12 dollar per share.
Sales rose by 6% to 17.6 billion dollars, with comparable sales growth of 5.1%.
However, costs rose, with the retailer making "significant investments" heading into the holidays, specifically into hours, training and wages.
Another disappointment is that Target expects comparable sales growth of just 5% in Q4, which is a strategically important period due to the Holiday season.
Target shares were down 11% in pre-market trading on Tuesday after this report was published.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
Target said profit was 622 million dollars, or 1.17 dollar per share, for its third quarter to 3 November, compared with 478 million dollars, or 87 cents per share, a year earlier.
Adjusted earnings per share from continuing operations reached 1.09 dollar, while analysts, on average, had been expecting 1.12 dollar per share.
Sales rose by 6% to 17.6 billion dollars, with comparable sales growth of 5.1%.
However, costs rose, with the retailer making "significant investments" heading into the holidays, specifically into hours, training and wages.
Another disappointment is that Target expects comparable sales growth of just 5% in Q4, which is a strategically important period due to the Holiday season.
Target shares were down 11% in pre-market trading on Tuesday after this report was published.
Copyright (c) 2018 CercleFinance.com. All rights reserved.