Target (TGT, Financial) released its Q3 results, posting a $1.85 Non-GAAP EPS, falling behind estimates by $0.45. Moreover, revenue came in at $25.67 billion, missing projections by $230 million. Income grew 1.1% annually. Driven by a 2.4% increase in visitor visits and a 10.8% jump in digital comparable sales, the company noted a 0.3% comparable sales improvement in Q3. Target Circle 360TM and Drive Up services drove same-day delivery, which also helped to generate double-digit increase.
While food and beverage and basics categories showed low-single-digit gain relative to the previous year, performance by category included a more than 6% increase in beauty sales. Target projects GAAP and adjusted EPS in the range of $1.85 to $2.45, below the consensus of $2.64, for Q4, expecting flat comparable sales.
Between $8.30 and $8.90, the business anticipates full-year GAAP and adjusted EPS. Furthermore, we've seen Target's YTD gains jump to almost 9%, but it's important to note that they've trailed behind the broader market's 24% gain over the same period.
