US: Target Q3 profits slump despite solid revenues
- Q3 net profit down 46% to US$341m
- Revenues up 1.9% to $17.258bn
- US sales up 2% to $16.9bn
Comparable store sales were up 0.9% during the quarter
Retailer Target Corporation posted reduced profits for the third quarter, despite solid revenues in the company’s core US business.
US sales rose 2% to $16.9bn, with comparable store sales up 0.9% and the gross margin rate down slightly to 30%.
Meanwhile, the group's Canadian business generated revenues of $333m, with a gross margin rate of 14.8%, impacted by efforts to clear excess inventory.
“Target’s third quarter financial results reflect continued strong execution in our US segment in an environment where consumer spending remains constrained,” said chairman, president and CEO Gregg Steinhafel.
“As our focus shifts to the fourth quarter, we are intently focused on delivering outstanding merchandise, an easy, fun shopping experience and an unbeatable combination of everyday low prices, weekly ad discounts, 5% REDcard Rewards and price match policies throughout the US and Canada.
“And, in our Canadian segment, we are also focused on improving performance as we transition from opening to operating our 124 stores.”
Target now expects to report full-year adjusted earnings per share of $4.59-4.69, down on its earlier guidance of $4.70-4.90.
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