Discount-store retailer Target Corp. (TGT) is slated to release its third-quarter earnings before the market opens Tuesday.
On average, 20 analysts surveyed by Thomson Reuters expect the company to post earnings of $0.50 per share for the quarter, with estimates ranging between $0.45 and $0.59 per share. Analysts' estimates typically exclude special items. Revenues for the quarter are estimated to be $15.25 billion, representing a 0.9% growth from last year.
In the third quarter last year, the company had reported net earnings of $483 million or $0.56 per share, on total revenues of $14.84 billion and comparable store-sales growth of 3.7%. Target's then chairman and chief executive officer, Bob Ulrich, had stated that the prior year third-quarter earnings were disappointing due to soft sales in higher margin categories, leading to lower-than-expected gross margin in core retail operations.
While announcing October monthly sales in early November, the Minneapolis, Minnesota-based company had reported that its total quarter-to-date sales rose 1.4% to $14.79 billion, while comparable-store sales for the period dropped 1.6% compared to a 3.3% decline in the prior-year period.
Although the recession has had a negative impact on many retailers due to reduced customer spending, Target reported a growth in its sales for the months of August, September, and October. In October, the company's net retail sales rose 2.8% to $4.54 billion, while September sales rose 1.3% to $5.39 billion, and August sales edged up 0.1% to $4.86 billion. Meanwhile, comparable-store sales for the month of October dropped 0.1%, September comparable store sales declined 1.7%, and August comparable store sales decreased 2.9%.
October is not a typically strong sales period for retailers being a transitional month between the two largest selling seasons of the year: back-to-school and Christmas. U.S. retailers use the month to clear out fall merchandise and make room for holiday floor sets. For the month of October, department store operators posted mixed same-store results as consumers continued to exercise restraint amid job losses and an unemployment rate that is close to 10%. The retail industry posted a 4.1% decline in same store sales for the month of October 2008.
Gregg Steinhafel, the company's current chairman, president and chief executive officer, in early November said that the company is entering the holiday season with very clean inventories.
In its preceding second-quarter, Target had reported a 6.4% decline in profit, mainly reflecting a 2.7% drop in retail sales and lower comparable store sales. Net earnings dropped to $594 million from $634 million last year. On a per-share basis, earnings were $0.79, down 3.9% from $0.82 a year ago. Quarterly net sales decreased 2.6% to $15.07 billion from $15.47 billion in the prior year quarter. Retail sales fell to $14.57 billion from $14.97 billion in 2008, due to a 6.2% decline in comparable-store sales, partially offset by the contribution from new store expansion.
While announcing the second-quarter results, Steinhafel said, "Second quarter earnings were stronger than expected due to very strong operating margin in our retail segment, and credit card segment performance in line with expectations. Looking forward to the second half of the year, we are focused on initiatives to drive incremental traffic and sales in our stores while maintaining disciplined execution in both of our business segments."
The company earlier had noted that its sales remained challenging, however, it continues to experience favorable gross margin performance within categories and disciplined expense control in its retail segment, as well as modestly improving risk trends in its credit card segment.
Founded in 1902, Target operates general merchandise and food discount stores in the United States and markets its products through its network of distribution centers, as well as through its online shopping site, Target.com. In addition, the company operates a credit card segment that offers branded proprietary credit cards, including the Target Visa and the Target Card. The company currently operates 1,743 Target stores in 49 states.
In early October, Target announced the opening of 26 new stores that would create more than 5,000 new jobs and would help support local economies and communities around the country. The company noted that of the total store openings, twenty-one locations were general merchandise stores, while the five locations were full-grocery SuperTarget stores. In late July, Target announced the opening of 23 new stores, which created 4,000 jobs.
Among peers, membership warehouses operator Costco Wholesale Corp. (COST) in early October reported a 6% decline in profit for the fourth quarter, hurt by softness in U.S. sales, higher employee benefit costs, and weaker foreign currencies. The Issaquah, Washington, D.C. - based company's net income was $374 million or $0.85 per share, lower than prior year's net income of $398 million or $0.90 per share.
Costco's total revenue declined to $22.38 billion from $23.10 billion in the prior year quarter. Net sales were $21.89 billion, down 3% from $22.63 billion last year. Comparable sales declined 5%, comprising 6% drop in the U.S. sales, and 3% decline in the international region. Excluding the impact of gasoline deflation and foreign exchange, comparable sales for the quarter edged up 1%. Retail giant Wal-Mart Stores, Inc. (WMT) last Thursday reported higher profit for the third quarter, helped by productivity initiatives and efficient inventory management at the U.S. segment. Net income attributable to the company was $3.239 billion or $0.84 per share, up from $3.138 billion or $0.84 per share last year.
Wal Mart's total third-quarter revenues increased to $99.411 billion from $98.345 billion. Net sales grew to $98.667 billion from $97.619 billion in the third quarter last year. Meanwhile, total U.S. same-store sales for the quarter slipped 0.4% without fuel, compared to a 2.5% growth last year. With fuel, same-store sales decline was 0.8% in the latest quarter, compared to a 2.9% increase last year.
In an October 28 research note, Citigroup upgraded its rating on Target shares to "Buy" from "Sell".
TGT closed Monday's regular trading session at $50.29, up $1.30 or 2.65%, on a volume of 10.98 million shares. In the past 52 weeks, shares have been trading between $25.00 and $51.77, with a 3-month average volume of 7.77 million shares.
For comments and feedback contact: editorial@rttnews.com
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.