Target surges 14% after raising earnings forecast

Investment in same-day-delivery new stores pays off

US retailer 0'>Target 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”.

What is your sentiment on TGT?

150.71
Bullish
or
Bearish
Vote to see community's results!

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

The material provided on this website is for information purposes only and should not be regarded as investment research or investment advice. Any opinion that may be provided on this page is a subjective point of view of the author and does not constitute a recommendation by Currency Com Bel LLC or its partners. We do not make any endorsements or warranty on the accuracy or completeness of the information that is provided on this page. By relying on the information on this page, you acknowledge that you are acting knowingly and independently and that you accept all the risks involved.
iPhone Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image
Trade the world’s top tokenised stocks, indices, commodities and currencies with the help of crypto or fiat
iMac Image