Tagret (TGT) released earnings that disappointed Wall Street.
The company's earnings per share fell short of analyst expectations. The company reported an EPS of $1.09. The analyst estimates were $1.12 a share.
TheStreet's Martin Baccardax covered Target's earnings. He reported that the company posted weaker-than-expected third quarter earnings but narrowly missed estimates for same-store sales amid a mixed set of numbers for the country's biggest retailers.
Target said adjusted earnings for the three months ending on November 3, its fiscal third quarter, came in at $1.09 per share, missing the Street consensus of $1.12 and rising 20.2% from the same period last year. Group sales, Target said, jumped 5.4% to $17.59 billion, matching analysts' forecasts, but noted that same store sales grew 5.1% compared to a 5.2% forecast. Target also said its third quarter gross margin, a key metric for profitability, fell 90 basis points to 28.7%, thanks in part to higher supply-chain costs as part of its drive towards digital sales and rising wage and training costs.
"We've made significant investments in our team heading into the holidays and they are ready to serve our guests with a comprehensive suite of convenient delivery and pickup options, a wide range of new products and unique gift ideas and a strong emphasis on low prices and great value," said CEO Brian Cornell. "We plan to leverage our current momentum into 2019, when we'll achieve greater scale across the full slate of our initiatives - creating efficiencies and cost-savings, further strengthening our guest experience and positioning Target for profitable growth in the years ahead."
More details on the earnings can be found here.