As The Holidays Approach, Target Reports Sluggish Q3

Third quarter revenue at Target was down more than 4% as the retailer reported declines in brick and mortar and digital comparable sales.

For the quarter ended October 28 total revenue was $25.4 billion, a drop of 4.2% from the comparable quarter the previous year. Comparable sales declined 4.9% in the third quarter, reflecting a comparable store sales decline of 4.6% and a comparable digital sales decline of 6%. 

Net earnings were $971 million, an increase from net earnings of $712 million in the comparable quarter the previous year. Diluted earnings per share were $2.10, up 36% from the same quarter the previous year.

According to the company, declines in discretionary categories were partially offset by continued growth in frequency categories, most notably in beauty. Same-day services grew more than 8%, led by more than 12% growth in Drive-Up.

"In the third quarter, our team continued to successfully navigate our business through a very challenging external environment,” said Brian Cornell, chair and chief executive of Target Corporation. “While third quarter sales were consistent with our expectations, earnings per share came in far ahead of our forecast. This profit performance benefited from our team's commitment to efficiency and disciplined inventory management, and I'd like to thank them for their tireless efforts. Looking ahead, we're continuing to make investments throughout our business -- in our assortment, our team and the services we offer -- to provide the newness, affordability and convenience our guests want during the holiday season and beyond."