Target etched out a slim sales increase in the third quarter but profits slumped as inflation-weary customers pulled back on spending and costs related to a dockworker strike in October dragged on results.
FILE - A sign on a Target store in Harmarville, Pa., is shown on Sept. 16, 2024. The Minneapolis retailer fell short of Wall Street expectations for the quarter and its outlook for the final three months of the year also disappointed industry analysts in an environment in which Americans“We encountered some unique challenges and cost pressures that impacted our bottom-line performance,” said Chairman and CEO Brian Cornell .
The retailer reported that its comparable sales — those from stores and digital channels operating for at least 12 months — rose 0.3% during the third quarter. That’s below the 2% gain posted in the second quarter. The increase in the April-June period reversed months of declines, including a 3.7% drop in the first quarter and a 4.4% decline during the company’s final quarter of 2023.
There were some bright spots. Target said the number of sales transactions increased 2.4% in the quarter. Digital comparable sales also increased 10.8%, reflecting a 20% increase in same-day delivery powered by its Target Circle loyalty program and double digit increase in its drive up-service.so the company is more reliant on discretionary items like clothing and accessories, according to the company’s latest annual report.
And Target said shoppers remain cautious as prices on necessities, while abating, are still higher than they were a few years ago.
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