Target (NYSE:TGT) reported strong third quarter financial results and raised its outlook for the year, as the retailer reaps the rewards of new in-store, mobile and online initiatives implemented in the past year.
The retailer reported a 56 percent increase in profits for the quarter to $549 million and sales rose 2.1 percent. There was a 1.9 percent lift in comparable store sales while sales from digital channels jumped 20 percent.
Brian Cornell, Target's CEO and chairman, pointed to new merchandising initiatives and in-store services as contributors.
For example, outfits featured on new mannequin displays garner, on average, a 30 percent lift in sales and enhanced in-store and online presentations in the baby department are boosting both traffic and conversions.
"The third quarter marked the fourth consecutive quarter in which we have grown traffic, and Target's sales growth continues to be led by our signature categories: style, baby, kids and wellness," Cornell noted. "Our momentum is encouraging, especially in the face of stiffer prior-year comparisons. Our results highlight the benefit of a consistent, company-wide focus on our key strategic priorities, and that focus will continue to position Target well in the months and years ahead."
The retailer also raised its outlook for the year as it goes into the holiday season with a strong omnichannel strategy.
Target is promoting a variety of ways shoppers can order and pick up items, and expects nearly 25 percent of online sales to be fulfilled by a store, either through BOPIS or by shipping from a store.
|View full Q3 earnings infographic from Target|
-See the Target financial release
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