Target, which owns the second-largest chain of discount stores in the United States, increased its net profit in the third fiscal quarter by 48% and revenue by 13%. Target's quarterly revenue rose to $ 25.65 billion from $ 22.63 billion a year earlier. The consensus forecast of analysts for this indicator was $ 24.61 billion. Growth in comparable sales of Target in the last quarter was 12.7% (forecast was 8.2%). Online sales increased by 29%. Net income for the quarter ended October 30 was $ 1.49 billion, up from $ 1.01 billion in the same period last year. Earnings per share increased to $ 3.04 from $ 2.01. Profit excluding one-off factors was $ 3.03 per share, beating the market average forecast of $ 2.82 per share.
Ahead of the holiday season, the company has replenished its warehouses with goods worth more than $ 2 billion in excess of last year's figure. Target is one of the American retailers leveraging their own logistics capabilities to overcome challenges in global supply chains. The retailer expects LFL sales to grow in "high single" or "low top ten" percentages in the fourth quarter of the current fiscal year. Market consensus assumes 7.2% growth.
We highly appreciate the management's strategy and believe that the company's business will continue to actively develop both physically and online. The management plans to annually invest $ 4 billion in business expansion and development. The return of consumers to their daily lives after the lockdown will increase physical traffic to the company's stores, while the convenience of online services will continue to drive digital growth. In addition, we expect the company's market share to continue to increase in many food segments, especially in the apparel sector. Investments in the development of logistics infrastructure are also a positive factor that enhances the company's business efficiency.
Target is one of the largest North American retailers offering customers both everyday essentials and fashionable, differentiated merchandise at discounted prices. Target operates 1,862 stores in the US.