Target posts better-than-expected Q3, raises forecast
MINNEAPOLIS — Target CEO Brian Cornell says stronger-than-expected back-to-school sales lifted the retailer in the third quarter, prompting the company to raise its fourth-quarter sales and full-year earnings forecast.
For the third quarter ended Oct. 29, Target reported a comparable sales decline of 0.2%, the retailer's second-straight quarterly drop in same-store sales. Target earned $1.04 per share, adjusted, on sales of $16.44 billion. Analysts had expected the company to report earnings of 83 cents a share on $16.3 billion in revenue, according to Thomson Reuters. In the prior-year period, Target earned 86 cents a share on sales of $17.61 billion.
“We are very pleased with our third quarter financial results, which reflect meaningful improvement in our traffic and sales trends and much stronger-than-expected profitability,” said Brian Cornell, chairman and CEO of Target. “Favorable gross margin mix and efficient execution by our team drove third quarter EPS performance well beyond our guidance. We also continued to gain market share in key Signature Categories and saw unexpectedly strong sales in the Back-to-School and Back-to-College season. As we move into the biggest quarter of the year, we are pleased with our inventory position and confident that our team will deliver a great guest experience as they bring our merchandising and marketing plans to life throughout the holiday season.”
Target raised its expectations for fourth quarter comparable sales and now expects growth in the range of flat to 1%, compared with prior guidance of -2% to flat. In the fourth quarter, Target expects both GAAP EPS from continuing operations and Adjusted EPS of $1.55 to $1.75. It predicts full-year adjusted earnings per share will come in between $5.10 and $5.30, compared with its prior forecast of $4.80 to $5.20.
Top e-commerce trends that will impact retail in 2017
Paperchase to launch holiday ‘pop-up’ stores in U.S.
AUSTIN, Texas — British greeting card and stationery retailer Paperchase plans to open its first pop-ups in the U.S. market just in time for Christmas.
Paperchase is famous in London for its distinctive Holiday collections, which will be showcased in the five pop-up stores.
The Paperchase pop-up stores will be located across the U.S.:
- Oak Park Mall – Overland Park, Kan.
- Scottsdale Fashion Square – Scottsdale, Ariz.
- The Shops at Willow Bend – Plano, Texas
- The Parks Mall at Arlington – Arlington, Texas
- Cherry Creek Shopping Center – Denver, Colo.
“We are incredibly excited to be launching five new pop-up stores in the U.S. With the lead up to Thanksgiving and Christmas, we’re offering customers something new and fresh that they won’t find in their usual retail stores,” said Simon Howes, retail director for Paperchase.
Earlier this month Paperchase announced it is planning to open two freestanding stores in the United States next year, both in Chicago. Currently, the brand supplies Target and Staples with private-label greeting cards.