3 Reasons Target Just Destroyed Estimates Again
Shares of Target (NYSE: TGT) are climbing again after the company delivered another blowout earnings report. The big-box chain has been arguably the biggest retail winner during the pandemic and the latest results show why.
Comparable sales in the third quarter jumped 20.7%, outpacing peers like Walmart and Costco Wholesale, and showed growth in both in-store sales and digital. Unlike most retailers, Target also saw store traffic increase, even while digital comparable sales jumped 155%. Revenue in the period rose 21.3% to $22.6 billion, easily beating analyst estimates of $20.9 billion. Profits also jumped as the company saw fewer markdowns and leveraged the sales gains against its fixed-cost base. As a result, operating income nearly doubled to $1.9 billion, and adjusted earnings per share surged from $1.36 to $2.79.
Nearly every essential retailer has experienced a tailwind from the pandemic, but Target is outperforming just about all of its retail peers, and, unlike home improvement retailers like Home Depot and Lowe's, it's making gains that will last beyond the pandemic. Let's take a look at how Target was able to blow away expectations once again.
Source Fool.com
