Target Corporation posted an increase in third-quarter profit, beating Wall Street estimates, according to a press release by Target on Wednesday.
- Meanwhile, operating margin declined to 7.8% and gross margin declined to 28.0% from a year ago, reflecting pressure from higher merchandise and freight costs and rising supply chain costs.
- The company stated it continues to expect the full-year operating margin rate to be 8% or higher.
- Third-quarter comparable sales expanded by 12.7%, indicating comparable store sales growth of 9.7% and comparable digital sales growth of 29%.
- Comparable sales growth was largely driven by traffic. Over 95% of the company’s Q3 sales were fulfilled by its stores.
- Total revenues were $25.7 billion, up 13.3% from the previous year, driven by overall sales growth of 13.2% and a 22.3% increase in other revenues.
For Q4, the company projects high-single digital to low double-digit gains in comparable sales, compared with the prior guidance for a high single-digit increase. TGT down -5.26%