World News – CA – Target crush estimates as the retailer uses new shopper habits to gain market share

The goal announced Wednesday for the third-quarter fiscal earnings that easily exceeded analysts’ estimates as the discounted retailer won market share by changing epidemic shoppers’ habits in lasting gains.

The company said it has captured market share across all of its core categories, from apparel to beauty. Year-to-date, it said it won a $ 6 billion market share, with a $ 1 billion gain in stocks over the last quarter.. .

Supported by this strength, online and in-store sales for at least a year have increased by 20. 7% during the third quarter. Similar digital sales grew 155%, while same store sales increased 9. 9%.

Despite the strong results, Target refused to provide a prospect. It pulled its forecast during the first quarter as the coronavirus made predicting shopping habits more difficult.

Target said its third-quarter net income rose to $ 1. 01 billion, or $ 2. 01 per share, from $ 714 million, or $ 1. 39 per share, a year ago. Excluding items, target earned $ 2. 79 per share, much more than $ 1. Analysts are forecasting 60 per share.

Total revenue grew 21% to $ 22. $ 63 billion from $ 18. $ 67 billion last year, beating analysts’ forecasts of $ 20. 93 billion.

While some retail competitors were forced to close in the early months of the pandemic, Target’s nearly 1,900 stores remained open as a primary retailer that can sell a wide range of goods, from milk gallons to pajamas and laptops.. In recent months, even as mall competitors open again, Target said it has retained customers and won more wallets from them.. Â

The company said customers frequently shopped with Target in the third quarter and when they did, they put more in their baskets.. Bulk transactions rose in Target’s stores and on its website 4. 5% on an annual basis. The average ticket grew 15. 6% in the third quarter. Â

Sales across all of Target’s merchandise categories were higher in the third quarter than the same time a year earlier. Electronics jumped by over 50%. The house rose by a percentage point in the mid-twenties. Clothes increased by 10%. And the other two categories, & Beauty Essentials and & Food & Drink, Grown Up as Teen.

The goal is to create long-running plays to get business from troubled supermarkets and staples badly damaged by malls. The company announced last week that it would open smaller versions of Ulta Beauty stores in hundreds of its stores with a variety of products, from hair care and fragrances to lip glosses.. . More than 100 stores are expected to open next year.

Target CEO Brian Cornell said in a call to reporters that the clothing was a bright spot for the retailer as well â € ” And one is planning to side with it. Besides comfortable clothes, pajamas and relatives’ clothes, he said children’s and men’s clothing performed well during the three-month period.

“Clothing has been one of our strengths, [and of course] from a market share point of view, and it is one of the true highlights of our business over the quarter, and we certainly see that going on towards the end of the year,” he said..

Large online retailer options remained popular. Dock pickup service, Drive Up, increased by over 500%. Target Shipt home delivery has grown by nearly 280%. Order pick-up, an in-store option that allows customers to refund online purchases in person, has risen by more than 50%..

The pandemic, however, has changed the rhythm of sales and purchases made by customers, Cornell said. He said that since so many schools and colleges started the year with distance learning, Target kept the merchandise on the shelves and customers shopped around for later.. . These purchases led to cost growth in the average 20% range in September, he said.

Many hours at home have translated into « explosive growth in electronics, » he says, such as purchasing computer software, video games, portable electronics, and office equipment.. And shoppers bought more than usual in the home category as they replaced decor and bought kitchen appliances.

As the pandemic continued to spread amid the holiday season, Target started sales early and tried to differentiate safety and comfort.. Last month, the company said it would allocate twice as many parking spaces for small trucks on the side of the road. Added features to help shoppers during their usual busy time, such as a website tool they can use to check if there’s a line outside their store and if so, reserve a spot before they visit.

Cornell said customers are already buying gifts, « but they still have a very long shopping list that they have to fulfill over the next few weeks. ».

“We expect them to decorate their homes,” he said. «  We expect to give a lot of gifts because many families will be shipping gifts all over the country and celebrate very differently than they have been in the past..

He added: « This is the holiday season where the guest tries to find a little joy.

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Target Corporation, Earnings, Brian Cornell