Target Q3 Net Drops 46.5 Percent

TargetMINNEAPOLIS-Increased costs and reduced margins slammed Target's bottom line in its third quarter. Net income was down 46.5 percent, to $341 million, in the quarter which ended on Nov. 2.

Selling, general and administrative expenses were up 4 percent in dollars, although as a percentage of sales they were essentially flat with last year's third quarter at 22.3 percent. Gross margin was down 61 basis points, finishing at 29.7 percent. Last year's quarter also included a one-time gain on a receivables transaction of $156 million.

These factors offset a net sales gain of 4 percent, to $17.3 billion. Same-store sales edged up 0.9 percent in the quarter. The top line included $333 million in net sales from Target's Canadian stores, of which the company expects to open 124 by the end of this year. Total sales in the U.S. stores were up 2 percent.

Gregg Steinhafel, Target's chairman, president and CEO, said sales are on an upward swing in spite of "an environment where consumer spending remains constrained. As our focus shifts to the fourth quarter, we are intently focused on delivering outstanding merchandise; an easy, fun shipping experience; and an unbeatable combination of everyday low prices, weekly ad discounts; five percent REDcard Rewards; and price-match policies throughout the U.S. and Canada.

HFN Staff | News & Commentary

HFN provides detailed information on the key home classifications: Housewares, Tabletop, Floor Covering & Rugs, Furniture, Home Textiles, Lighting, Home Decor, Mattresses & Bedding, Gifts, Major Appliances and Consumer Electronics as well as Business, Finance and Retail.


  • Patti Carpenter Talks Color and its Importance in the Home

    Camera Icon   More Videos

Subscribe to
HFN Omnichannel
Receive the news you need to know about the trends in the industry delivered right to your inbox.

Current Issue

  • HFN August 2017 cover


    August 2017

    COVER STORY: Sharpening the Focus on Millennials

    Find out what makes Millennials tick when it comes to home decorating, shopping and at-home entertaining with HFN's annual consumer study. Turns out, Millennials favor the in-store shopping experience.


    • Power of the People - Crowdfunding campaigns provide needed capital, feedback for home and housewares product launches.
    •  Omnichannel Retailing: Visual Search Takes Off - Learn how voice and visual search are revolutionizing product discovery.