Target sales made big strides in the third quarter with online revenues, supported by omnichannel services such as buy online pickup at store, a critical driver, even if the stores themselves had a strong performance.
Net earnings in the third quarter were $1.01 billion, or $2.01 per diluted share, versus $714 million, or $1.39 per diluted share, in the year-previous quarter Adjusted for one-time events, Target noted, diluted earnings per share were $2.79 versus $1.36 in the period a year before.
Target adjusted diluted earnings per share topped a MarketBeat-published analyst consensus estimate of $1.60.
Total comparable sales advanced 20.7% in the quarter year over year, Target reported, based on comp stores sales growth of 9.9% and digital sales growth of 155%. Same-day services, including order pickup, drive up and Shipt delivery, grew 217%. Stores fulfilled more than 95% of Target’s third quarter sales, the company said.
Total revenue was $22.63 billion, up 21.3% versus the year-prior quarter, with sales gaining 21.3% to $22.34 billion, according to Target. Operating income was $1.94 billion versus $1 billion in the period a year earlier.
Brian Cornell, Target chairman and CEO, said, “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. In preparation for the holiday season, we focused first on the safety of our guests and our team, making changes to eliminate crowds while enhancing our fast-growing, contactless options like in-store pickup, drive up and Shipt. In a holiday season that will feel different for our guests, we’re committed to helping them navigate the season safely, as they find new ways to celebrate with family and friends.”