Target shares (TGT) gained more than 8 percent Wednesday morning after the company reported diluted earnings per share (EPS) from continuing operations of $1.06 in the third quarter, an increase of 39.7% from the same period a year ago.
Despite this stronger-than-expected profitability, overall sales declined 6.7% to $16.4 billion from $17.6 billion last year, reflecting a 0.2% decrease in comparable sales, though digital comps jumped 26 percent. Looking ahead to the fourth quarter, Target said it’s pleased with its inventory position and raised its full-year adjusted earnings per share guidance to between $5.10 and $5.30, compared with its prior forecast of $4.80 to $5.20.
Dick’s Sporting Goods
Sports Authority’s demise is Dick’s Sporting Goods (DKS) gain. The sporting goods retailer said Tuesday that consolidated same-store sales for the third quarter rose 5.2%, a vast improvement over the 0.4% increase recorded in the same period a year ago and better than the 2.8% growth reported in Q2. As such, net sales surged 10.2% to roughly $1.8 billion, which the company attributed to growth across its hardlines, apparel and footwear categories. E-commerce comprised nearly 10 percent of sales.
Dick’s expects consolidated comps to grow by 3 percent to 6 percent in the fourth quarter, compared to a 2.5% decrease a year ago. The company also expects to re-open three former Sports Authority stores as new Dick’s Sporting Goods locations in Q4, while the 30 Golfsmith stores it’s currently operating will be converted to Golf Galaxy outposts before the end of the current fiscal.