Minneapolis – Traffic was the driver of strong comp performance at Target, which fattened inventories for the second half of the year.
In the home department, same-store sales were up in the low double digits, with seasonal and stationery leading the way. The sector also saw record performance in Back-to-College, Back-to-School and Halloween during the quarter.
On the subject of supply chain issues, EVP/chief operating officer John Mulligan said Target is beginning to see a significant reduction in overseas delay times. In the U.S., it has secured capacity in rail and trucking to keep Q4 merchandise flowing steadily. And the company wrote its holiday orders earlier, with Q3 ending inventories up 18% compared to last year.
For the quarter ended Oct. 30, total revenue of $25.7 billion grew 13.3% compared with last year, driven by total sales growth of 13.2% and a 22.3% increase in other revenue.
Third quarter comp climbed 12.7% on top of 20.7% growth in the year-ago quarter. Comp growth was driven entirely by traffic, the company reported. Store comp sales increased 9.7% on top of 9.9% growth in last year’s Q3. Digital comp were up 29% on top of 155% growth last year.
Net earnings jumped 46.8% to $1.5 billion, or $3.04 per diluted share.
Year-to-date, total revenue rose 15.0% to $75.0 billion. Sales increased 14.0% to $74.0 billion, with other revenue up 24.0% to $819 million. Net earnings climbed 80.8% to just under $3.0 billion, or $10.87 per diluted share.
“The consistently strong growth we’re seeing in our business, quarter after quarter, is a testament to the passion and commitment our team brings to serving our guests, and the trust we’ve built with them as a result,” said Brian Cornell, chairman and chief executive officer.