Target Corp. (TGT), the operator of general merchandise and food discount stores, expects its third-quarter earnings to surpass analysts’ expectations of 43 cents a share on the back of better-than-expected results for the month of September. However, Target holds a cautious outlook about its fourth-quarter results.
The Zacks Consensus Estimate for third quarter also remains at 43 cents.
Total sales for the month of September climbed 1.3% to $5,392 million from $5,320 million posted in the same month last year. However, year-to-date sales declined marginally by .7% year on year to $39,176 million.
Target’s comparable-store sales for the month of September fell 1.7%, an improvement over the 3% decline delivered in the same month last year. Year-to-date comps slipped 4.3% compared to a decline of 1.1% posted in the same period last year.
The company has been feeling the brunt of the recession, as cash-strapped consumers are now prioritizing their purchases. Realizing the fact that customers are reluctant to shell out more, the major discount retailer, Target, in order to woo customers this holiday season, announced an aggressive price cut on toys. The company slashed the price of selective toys by up to 50%.
Target currently operates 1,743 stores in 49 states.
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