Target isn’t just growing; it’s eating other retailers’ lunch. On a call with analysts, CEO Brian Cornell said his company made “meaningful share gains across every one of our core categories as guests increasingly rely on Target to reliably and safely serve their wants and needs.”
Moreover, while the retailer grew, and operated in a volatile pandemic environment, Target added to its bottom line. Its operating income nearly doubled year over year, coming to $1.9 billion in Q3, and net earnings grew by 41.9%.
In emailed comments, Moody’s retail analyst Charlie O’Shea said that “[p]ast and continuing strategic investments are paying off in a big way, which combined with Target’s superior execution resulted in significantly improved operating margin.” He added that, “Target has built up sufficient margin cushion such that it can absorb the meaningful levels of promotions which will be necessary to compete effectively with the likes of Walmart and Amazon.”Retail Dive