The Most Impressive Number From Target's Blowout Earnings Report
Target (NYSE: TGT) shares surged Wednesday, gaining by double digits after the big-box retailer reported blockbuster results in its third-quarter earnings report.
Comparable sales jumped 24.3%, a new company record, driven by strong performance in both in-store sales and the digital channel. Revenue increased 24.7% to $23 billion, easily beating estimates of $20.1 billion, while Target leveraged that sales growth on the bottom line with adjusted earnings per share climbing 85.7% to $3.38, making the analysts who predicted just $1.62 in EPS look silly. Digital sales also surged by 195%, showing that the company's investments in same-day fulfillment capabilities continue to pay off.
In the parade of stellar metrics, however, one figure in particular stood out. Management said the company gained $5 billion in market share through the first half of the year. That means that of the $6.5 billion in incremental sales Target has added through the first half of the year, most of it came at the expense of weaker rivals. And that has significant implications for the company's long-term growth potential.
Source Fool.com
