Target Corporation (NYSE: TGT) saw its stock surge Wednesday morning, Nov. 20, after the retailer reported sales growth and traffic surges for both its physical stores and its digital offerings for the third quarter of 2019.
The company reported earnings per share (EPS) of $1.36, handily beating analyst estimates of $1.18 and blowing own guidance of $1.04 to $1.24 out of the water. Target reported EPS of $1.09 during the third quarter of 2018.
Target recorded $18.67 billion in revenue for the third quarter of 2019, beating Zacks' consensus estimate of $18.47 billion and increasing 4.7% over the $17.82 billion reported during the same quarter of 2018.
The company experienced a 4.5% surge in same-store sales this quarter, surpassing analyst estimates of 3.6%. While 1.7% of this growth came from digital sales, 2.8% reflected in-store sales growth, according to Target's earnings release. Same-store traffic increased 3.1% in the third quarter, driven by both physical and digital shoppers.
"The Target team did an excellent job serving our guests and executing our strategy throughout the third quarter. Our third quarter results are further proof of the durability of our strategy, as we're seeing industry-leading strength across multiple metrics, from the top line to the bottom line," Target CEO Brian Cornell said. "Looking ahead, we have ushered in the holiday season with an unwavering commitment to guest service that complements our highly differentiated, value-driven assortment and our exceptional in-store shopping experience, as well as an unmatched suite of easy and convenient fulfillment options."
The massive retailer has remained competitive even as consumers have continued to demand their products quicker and quicker. Expectations have moved from two-day shipping to one-day shipping to same-day delivery.
"Third quarter comparable digital channel sales grew 31%, on top of 49% last year," according to the release. "Same-day fulfillment services, like Order Pick Up, Drive Up and Shipt, accounted for 80% of Target's digital comparable sales growth."
Target revised its full-year 2019 guidance to reflect its third quarter success. The company now anticipates full-year EPS of $6.25 to $6.45, up from $5.90 to $6.20.
The company's stock was up over 12% late Wednesday morning.
Chart: FreightWaves SONAR