• Q3 profit up 18% to US$436m
  • Retail sales up 1.4% to $14.8bn
  • Remains “cautious” about Q4 performance

 

Retail giant Target Corporation posted a better-than-expected third quarter profit of US$436m, up 18.2%, thanks to a strong performance from its retail business.

The US company said retail revenues for the three months to 31 October had risen 1.4% to $14.8bn, with comparable store sales down 1.6%.

Meanwhile, retail EBIT was up 2.4% to $791m, Target said.

"We're very pleased with our third quarter earnings performance, which reflects strong execution and a commitment to continued innovation by teams throughout the company," said Gregg Steinhafel, chairman, president and CEO. "Profitability in our retail segment during the third quarter was well above expectations."

However, the company said it remained "cautious" about the prospects for fourth quarter trading, pointing to the fragile state of the US economy and the likelihood of strong promotions over the Christmas holiday period.

Click here to view the company's full third quarter earnings statement.