People walk in front of Target store on March 02, 2021 in New York.
Emaz | Corbis News | Getty Images
Target is set to report its fiscal third-quarter earnings before the bell Wednesday, as the holiday season gains momentum and retailers juggle challenges from higher labor costs to shipping delays.
Here’s what Wall Street expects for the period, according to estimates from Refinitiv:
Earnings per share: $2.83, adjustedRevenue: $24.78 billion
Target has picked up new customers and gained market share during the pandemic, as its big-box stores became like a mini mall for skittish consumers. It has opened shop-in-shops for Apple, Ulta Beauty and Disney while emphasizing its own brands of workout clothes, home decor and more.
E-commerce sales have also jumped in popularity — growing by nearly $10 billion last fiscal year, as consumers sought safety and convenience. Its curbside pickup, Drive Up, and its same-day home delivery service, Shipt, have powered that digital growth.
Analysts will watch to see if that strategy is continuing to pay off, especially as shoppers buy holiday gifts and potentially direct more of their wallet toward experience-based purchases like spa services, fine dining and travel.
Target kicked off its holiday sales early this year, mirroring the approach it took last year. It had a “deals day” event Oct. 10 to 12 and promised to price-match if items dropped lower later in the season.
As of Tuesday’s close, Target’s shares are up about 51% this year. Shares closed at $266.39 on Tuesday, bringing the retailer’s market value to $130.01 billion.
This is breaking news. Please check back for updates.
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