Target (NYSE: TGT) Tuesday reported a mixed quarter, with revenue slightly topping analysts estimates but earnings falling short, as investments in its supply chain weighed on profits.
Despite the earnings miss, Target maintained its forecast for the full year, and said it's "better positioned for this holiday season than ever before."
Its shares were recently down 7%. They began Tuesday trading down $7.11, or 9.1%, to $70.70
Earnings per share came in at $1.09, adjusted, vs. $1.12 expected, with revenue: $17.82 billion vs. $17.80 billion expected. Same-store sales were up 5.1% vs. growth of 5.2% expected
Net income grew to $622 million, or $1.17 per share, compared with $478 million, or 87 cents per share, a year ago. Excluding one-time items, Target earned $1.09 per share, short of expectations for $1.12 per share.
Total revenue climbed 5.6% from a year ago to $17.82 billion, slightly beating analysts' estimates.
Sales at Target stores open for at least 12 months were up 5.1%, slightly short of expectations for growth of 5.2%. The company said digital sales rose 49% during the third quarter and contributed 1.9 percentage points to same-store sales growth.
It said the number of transactions at its stores jumped 5.3%, while the average shopper's ticket dropped 0.2%.
Target continues to expect adjusted earnings per share for the fiscal year to fall within a range of $5.30 to $5.50. For the holiday quarter, Target is anticipating same-store sales will be up roughly 5%.
