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Target tops estimates as CEO points to turnaround progress
Target said it is encouraged by early back-to-school shopping results as net sales rose 5.3% year over year to $26.5 billion.
Target delivered another earnings beat and signaled improving demand as it continues a multi-quarter turnaround centered on merchandising changes, Yahoo Finance reports. The retailer said store traffic increased and that sales rose across merchandise departments, led by beauty and food.
In an interview, Target CEO Michael Fiddelke said the company has made significant changes to what it sells and how it sells it, and that the response from shoppers has been strong so far. He added that the goal is sustained top-line growth over years, not just a couple of strong quarters.
Target has expanded wellness offerings, added 3,000 beauty products across 60 new brands, reset 75% of home decorative accessories, accelerated food and beverage innovation, and rolled out a back-to-school assortment that is more than 50% new. The company has also cut prices on 10,000 items, mostly food products, to stay competitive with peers.
According to the article, Target net sales increased 5.3% year over year to $26.5 billion versus estimates for $25.5 billion. Diluted earnings per share rose 100% year over year, reflecting the stronger results in the quarter.