Target struggles in the third quarter and offers tempered outlook for the holidays

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Target struggles in the third quarter and offers tempered outlook for the holidays
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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.

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Target said that it now expects its earnings per share to be in the range of $1.85 to $2.45 for its fiscal fourth quarter. That’s below the $2.65 per share expected by analysts polled by FactSet. 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.

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