Target Corporation, based in Minneapolis, reported a slight sales increase in Q3 2024, but profits fell sharply due to inflation and a dockworker strike that impacted operations. The retailer's net income dropped to $854 million, or $1.85 per share, missing analysts' expectations of $2.30 per share.
Sales rose to $25.67 billion, up from $25.4 billion, but still fell short of Wall Street forecasts. Target's comparable sales increased by just 0.3%, a significant drop from the previous quarter's 2% gain. The company now anticipates earnings per share between $1.85 and $2.45 for Q4, lower than the $2.65 predicted by analysts.
Despite challenges, including a reliance on discretionary items, Target saw a 10.8% rise in digital sales and a 2.4% increase in transactions. To boost sales, the retailer has implemented price cuts on essential items and launched a membership program, Target Circle 360, offering free same-day delivery on qualifying orders.
Target's shares plummeted 20% following the announcement, contrasting sharply with rival Walmart's strong performance.