Target Corp. (NYSE:TGT) announced the third quarter earnings results of fiscal year 2015 after the market closed on Tuesday, November 17. Although Target's financials were not far from expectations of investors, the stock price dropped around 4% to $69.37 in the open market November 18.
In sales, third quarter comparable growth 1.9% to 17.6 billion, most driven by store channel of 1.4%, and of 0.4% from digital channel. The net earnings increased 56% to $549 million compared to same period last year. Target reported third quarter adjusted EPS of $0.86 compared to $0.79 year over year. The company lifted its full- year goal of its EPS from $4.60 - $4.75 to $4.65-$4.75.
While sales rose 1.9% in the third quarter, the growth rate was lower than previous quarter. Brian Cornell, CEO of Target Inc., though most customers spent cautiously before key holiday season. It seemed that Target Corp. feels confidence in sales in the fourth quarter.
The lower sales in winter-clothes caused by warm weather, Brian Cornell pointed the main sales growth in signature categories, including toys, baby and kids apparel, and wellness items in food.
Target Corp. tried to work hard in digital sales part. There was only 20% in digital sales, lower than Target’s goal of 30% in the third period. Cathy Smith, the CFO of Target Corp., said that Target is trying to boost online sales in the following holiday season by offering free shipping until Christmas.