The best regulated crypto exchange
Find out why?
50 BTC prize pool!
Get your share!
I'm in

Target surges 14% after raising earnings forecast

By Lawrence Gash

Investment in same-day-delivery new stores pays off

US retailer saw its share price surge by 14.06 per cent after raising its full-year earnings forecast.

Target shares stood at £126.43 at the close of Wednesday trading, a gain of almost 90 per cent this year.

It now expects full-year adjusted profit of between $6.25 and $6.45 per share, up from between $5.90 and $6.20.

The corporation has aimed to improve its delivery times and to revamp its stores. It has spent billions of dollars on opening small stores in college towns and urban areas and on developing its private label business.

Target now fulfils online orders from the back of its stores rather than using a distribution centres, according to CEO Brian Cornell. “About 40 per cent of the cost goes away,'' he said. If a customer orders online and collects in store, or uses curbside pickup or select shipping, “about 90 per cent of the cost goes away”.

Same-day delivery services accounted for 80 per cent of its digital comparable growth, which itself grew by 31 per cent in Q3.

With the holiday season accounting for up to 40 per cent of retailers’ annual sales, Target looks set to go from strength to strength.

FURTHER READING: Online sales push Walmart to 2.5% revenue growth

FURTHER READING: M&S sees profits plummet 17 per cent

Like to share your thoughts and ideas about crypto and trading? You could join us as an external author. Email us on [email protected] to find out how you could become a contributor.
Subscribe to news
iMac Image
The most beautiful trading app
google play storeapple store
iPhone Image
iPhone Image