Shares of Target gained about 1.5% Wednesday after the retail titan reported higher-than-expected earnings for its third quarter to October 31. Shares are now up more than 28% since the beginning of the year.
Earnings per share (EPS) were reported at $2.79 to easily blow past $1.60 estimates from the Street. Revenue surged 21% to $22.63 billion, again higher than $20.93 billion expected from the Street.
“Our strong results in 2020 reflect the benefits of our multi-year effort to build a durable and flexible model, with a differentiated assortment and a suite of industry-leading fulfillment options — all brought to life through the passion and effort of our team. As a result, we’ve seen a deepening level of engagement and trust from our guests. The result is unprecedented market share gains and historically strong sales growth, both in our stores and our digital channels,” said Brian Cornell, chairman and chief executive officer of Target Corporation.
Comparable sales grew 20.7% to reflect wider trends of new shopper habits. Analysts were expecting sales that rose 11.2%. Target said it won $1 billion in market share in the last quarter to total 2020 market share gains to $6 billion.
Although Target declines to provide guidance despite strong quarterly numbers, CEO Cornell said it will continue to push to be more competitive in the beauty and apparel sectors.
“Apparel has been one of our strengths, [and] certainly from a market share standpoint, one of the real highlights for our business throughout the quarter, and we certainly see that continuing as we finish up the year,” Cornell said on a call with reporters.
Yesterday, Walmart reported that its e-commerce sales erupted 79% to facilitate a Q3 beat on both earnings and revenue. Shares surged to push the company’s market capitalization to more than $420 billion.
Similarly, Home Depot also delivered a beat as it continues to benefit from the stay-at-home shopping patterns.