Despite a soft third quarter, Target exceeded analysts’ expectations. The company on Wednesday reported total revenue of $25.4 billion, down 4.2% from a year ago, for the three months ended Oct. 28. Same-store sales fell 4.9%, which was in line with expectations.
Target’s operating income was $1.3 billion, up 28.9% from last year. Chief Growth Officer Christina Hennington said on a call with analysts that growth in beauty offset declines in its discretionary categories, but as inflation eases the company expects consumers to have more space for discretionary purchases.
Same-day services grew in Q3 by more than 8%. Drive-up led that segment of the business, with more than 12% growth, while inventory at the end of the quarter was 14% lower than last year.Retail Dive