Target posts 11.9 percent decline in Q3 earnings

Department store chain Target reported third quarter GAAP and adjusted earnings per share of 1.85 dollars, down 11.9 percent compared with last year.

Comparable sales increased 0.3 percent in the quarter, reflecting a comparable store sales decline of 1.9 percent and a comparable digital sales increase of 10.8 percent.

For the fourth quarter, Target expects approximately flat comparable sales and GAAP and adjusted EPS of 1.85 dollars to 2.45 dollars, translating to a full year expected GAAP and adjusted EPS range of 8.30 dollars to 8.90 dollars.

"We saw several strengths across the business, including a 2.4 percent increase in traffic, nearly 11 percent growth in the digital channel, and continued growth in beauty and frequency categories,” said Brian Cornell, chair and chief executive officer of Target Corporation.

“At the same time, we encountered some unique challenges and cost pressures that impacted our bottom-line performance," added Cornell.

Total revenue for the third quarter of 25.7 billion dollars was 1.1 percent higher than last year, reflecting a total sales increase of 0.9 percent and an 11.5 percent increase in other revenue.

Third quarter operating income of 1.2 billion dollars was 11.2 percent lower than last year. Beauty comparable sales grew more than 6 percent.

The company paid dividends of 516 million dollars in the third quarter, reflecting a 1.8 percent increase in the dividend per share.