Target tops Q3 earnings estimates

By: Miguel A. Rodriguez

14:53, 19 November 2021

Target followed its competitor’s footsteps by beating Q3 2021 earnings expectations

For the quarter ended on October 30, Target reported an adjusted EPS of $3.03, ahead of the $2.83 expected by analysts. Revenue also topped the $24.78 billion estimated, coming in at $25.65 billion, marking a 13% from the same time last year. Comparable sales grew 12.7% as customers made more tips to stores and visits to the website.

Target’s most profitable month was August, as parents and students bought school supplies preparing to return to in-person learning. According to CEO Brian Cornell, despite sales having been strong throughout the year, they have been “punctuated during key seasonal moments.” He expects the seasonal pattern to play out again during the holiday season.

In early October, the retailer started the holiday season, increasing operations by hiring 100,000 seasonal employees, filling 30,000 new supply chain roles, and adding about 5 million extra hours to current staff. Moreover, to attract even more customers, Target has opened additional Disney and Apple shops and is playing up beauty with about 100 Ulta Beauty shops at Target stores and on the website.

Target expects same-store sales to rise between a high single to low double digits for the current quarter.

As of Tuesday close, Target share price is up nearly 51% year to date, pushing the market valuation to $130.01 billion.


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This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided.