State and Nation Business

Target upbeat about holidays after 3Q climbs

MINNEAPOLIS– Target Corp. on Thursday reported a third-quarter net income that handily beat Wall Street expectations, and the big-box retailer issued a rosy outlook heading into the critical holiday shopping season.

The company, based in Minneapolis, is optimistic about the period, which can make up 40 percent of a retailer's annual revenue. The cheap-chic chain cited its new price matching program and a holiday collection partnership with luxury department store Neiman Marcus.

For the fourth quarter, the company said it anticipates adjusted earnings of $1.64 to $1.74 per share. Analysts predict $1.50 per share.

Target's stock added $1.11, or 1.8 percent, to $62.49 in late morning trading Thursday.

Target's upbeat view contrasts with rival Wal-Mart Stores Inc. The world's biggest retailer on Thursday issued a fourth-quarter profit outlook that came in below Wall Street expectations.

For the three months ended Oct. 27, Target earned $637 million, or 96 cents per share. That's up from $555 million, or 82 cents per share, a year earlier.

The current quarter's performance included a 15-cent gain tied to the retailer's sale of its consumer credit-card business to TD Bank Group.

Target, which had been looking for a buyer for nearly two years, announced the deal last month.

Removing certain items, the chain's earnings were 90 cents per share. Analysts expected 78 cents per share, according to a FactSet poll.

Revenue climbed 3 percent to $16.6 billion from $16.05 billion, but missed Wall Street's $16.91 billion forecast.

Revenue at stores open at least a year, a key retail metric, rose 2.9 percent, slower than last year's 4.3 percent increase. This figure excludes results from stores recently opened or closed.

Loading more

Digital Access

Digital Access
Access nwherald.com from all your digital devices and receive breaking news and updates from around the area.

Home Delivery

Home Delivery
Local news, prep sports, Chicago sports, local and regional entertainment, business, home and lifestyle, food, classified and more! News you use every day! Daily, weekend and Sunday packages.

Text Alerts

Text Alerts
Stay connected to us wherever you are! Get breaking news updates along with other area information sent to you as a text message to your wireless device.

Email Newsletters

Email Newsletters
We'll deliver news & updates to your inbox. Plan your weekend and catch up on the news with our newsletters.