The Atlanta Journal-Constitution
Target surges after strong earnings report
NEW YORK — Target is bursting into the critical holiday season with strong thirdquarter earnings as the company pushes faster delivery and invests heavily in stores and on new fashion brands. The situation
The retailer raised its expectations for the year and shares rose more than 12% Wednesday, striking an all-time high.
It was one of the largest oneday stock swings in the company’s history.
Among the big highlights? Target’s quarterly sales of clothing rose 10% year over year, helped by its intense focus on creating new store brands and making its clothing displays more visually appealing with mannequins. The recent fashion lineup includes a men’s clothing brand called Goodfellow & Co. and a lingerie brand called Auden.
What it means
Its success comes at a time when department stores are struggling with its fashion assortments. Kohl’s Corp. on Tuesday cut its full-year profit outlook after posting disappointing third-quarter results despite efforts to try to turn around its fashion assortment. Women’s clothing was its worst performing area.
“Everyone is chasing the same stuff, and it’s not working,” said Stacey Widlitz, chief international store hunter at SW Retail Advisors. “Target is taking the best of retail and putting it into the store.”
12%
Increase in Target shares Wednesday
10%
Increase in Target’s quarterly sales of clothing
4.5%
Increase in Target’s comparable sales this quarter
31%
Increase in third-quarter online sales