Target Investors Have Good Reason to "Expect More" This Holiday Season
Target (NYSE: TGT) is coming off a fantastic quarter of revenue and profit growth, and management raised its outlook for the fourth quarter for earnings per share.
Target has good reason to be optimistic that it can grow same-store sales between 3% and 4% again as well as produce more operating leverage. The company has grown its online sales primarily through its trio of same-day fulfillment options -- in-store pickup, Drive Up, and Shipt. Same-day fulfillment was responsible for 80% of its online sales growth in the third quarter.
As holiday shoppers feel crunched for time to receive and wrap presents, Target could become the go-to retailer for last-minute shopping. That's not to say Target doesn't have competition, though. Amazon (NASDAQ: AMZN) is notably investing in speedier delivery, and Walmart's (NYSE: WMT) massive brick-and-mortar presence makes it a formidable competitor as well.
Source Fool.com
