Target sees boost in Q3 same-store sales

MINNEAPOLIS — Target’s digital efforts appear to be gaining traction as the company posted U.S. same-store sales growth of 1.2%, reflecting digital sales growth of more than 30%.



“We’re pleased with our third quarter financial results, which were driven by better-than-expected performance in our U.S. Segment,” said Brian Cornell, chairman and CEO of Target Corp. “We’re encouraged by the improving trend we’ve seen in our U.S. business throughout the year, and our fourth quarter plans are designed to sustain this momentum. In Canada, we’ve made improvements to our operations, pricing and assortment in time for the holiday season, and we’re eager to measure how our guests respond. The entire company is energized as we approach the peak of the holiday shopping season, and we are looking forward to delivering an outstanding store and digital experience to our guests.”



Sales for the quarter increased 2.8% to $17.73 billion compared with $17.26 billion in the year-ago period. Net earnings increased 3.1% to $352 million. Diluted earnings per share were 55 cents compared with 54 cents in the year-ago period.



In the U.S. segment, sales increased 1.9% to $17.3 billion from $16.9 billion, reflecting a 1.2% increase in same-store sales.



In Canada, sales increased 43.8% to $479 million from $333 million in the year-ago period. Same-store sales increased 1.6%.



For the fourth quarter, the company expects adjusted EPS of $1.13 to $1.23, reflecting operating results in its U.S. and Canadian segments. Target expects full-year 2014 adjusted EPS of $3.15 to $3.25. Full-year 2014 GAAP EPS is expected to be 45 cents below adjusted EPS.