- Target will report its fiscal third-quarter earnings before the bell on Wednesday.
- The big-box retailer has converted its stores into mini malls and used digital services, such as curbside pickup, to fuel its growth.
- It launched its first holiday event in mid-October.
It is set to report its fiscal third-quarter earnings before the bell on Wednesday, as the holiday season accelerates and retailers face challenges ranging from high labor costs to shipping delays.
Here’s what Wall Street expects for the period, according to Refinitiv’s projections:
- Earnings Per Share: $2.83, Adjusted
- Revenue: $24.78 billion
Target has picked up new customers and garnered market share during the pandemic, as its big-box stores have become like a mini mall for skeet consumers. It has opened shop-in-shops for Apple, Ulta Beauty and Disney, while emphasizing its own brands of workout clothes, home decor and more.
E-commerce sales have also jumped in popularity — raking in nearly $10 billion in the last fiscal year, as consumers demand security and convenience. With its curbside pickup, drive up and same-day home delivery service, Shipt has driven that digital growth.
Analysts will watch to see if that strategy continues to pay off, especially as shoppers buy holiday gifts and potentially direct their wallets more toward experience-based purchases like spa services, fine dining and travel.
Target closed its holiday sales earlier this year, reflecting last year’s outlook. It had a “Deals Day” event from October 10 to 12 and promised price-matching when items went down later in the season.
As of Tuesday’s close, Target’s shares are up about 51% this year. The stock closed Tuesday at $266.39, bringing the retailer’s market value to $130.01 billion.
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