Target Reports 2.7 Percent Increase in Comparable Sales; Brian Cornell Comments

With the holiday season already upon us, Target Corporation is hard at work making sure those shelves are stocked with easy-to-find and high-demand products. As the retailer preps for the seasonal rush, it released its third quarter 2022 financial results, which showed signs of significant growth in sales and traffic.

"In the third quarter, our business delivered comparable sales growth of 2.7 percent, and we saw unit share gains across all of our core merchandise categories. This performance demonstrates the durability of our business model, which continues to serve our guests and drive loyalty despite the challenging economic environment," said Brian Cornell, Chairman and Chief Executive Officer. "In the latter weeks of the quarter, sales and profit trends softened meaningfully, with guests' shopping behavior increasingly impacted by inflation, rising interest rates, and economic uncertainty. This resulted in a third quarter profit performance well below our expectations."

As Cornell mentioned in a press release, Target's report showed that comparable sales increased 2.7 percent, on top of 12.7 percent growth last year. Other highlights from the report include:

• Adjusted EPS of $1.54 decreased 49.1 percent compared with $3.03 in 2021
• Comparable sales growth was driven by 1.4 percent traffic growth and a 1.3 percent increase in average ticket
• Category performance was led by growth in frequency businesses including Food and Beverage
• The company saw unit share gains across all five core merchandising categories
• The company announced an enterprise initiative to simplify and gain efficiencies across its business, representing an estimated cumulative savings opportunity of $2 to $3 billion over the next three years

"While we're ready to deliver exceptional value for our guests this holiday season, supported by the decisive inventory actions we took earlier this year, the rapidly evolving consumer environment means we're planning the balance of the year more conservatively," Cornell continued. "We're also taking new actions to drive efficiencies now and in the future, optimizing our operations to match the scale of our business and drive continued growth. The strides we have made in recent years to build a truly differentiated, guest-centered retail offering, punctuated by a balanced, multicategory portfolio, positions us well to navigate in any environment. Looking ahead, we remain laser-focused on delivering the best of Target to our guests, and continuing to invest in our long-term, profitable growth."

For more details from the report, access the press release here.

'Tis the season for sales growth! Stick with us as we continue to report.