The Latest and Greatest on Target Performance-Q3 2022
Retail news. Target releases Q3 earnings, reporting 22 consecutive quarters of sales growth despite the challenging retail environment. The 2.7% sales growth was led by frequency businesses including Beauty, Food & Beverage, and Household Essentials, which offset softening sales in discretionary categories.
The macro sales trend on decelerating discretionary categories is largely driven by inflationary food prices absorbing more of the guest wallet. As a result of spending changes, Target’s hardline sales have fallen by mid-single digits, with electronics and sporting goods dragging down the total, according to Target EVP & Chief Growth Officer Christina Hennington. Toy sales also decelerated in Q3, a trend that Hennington said the company will “continue to monitor closely as we move through the holiday season.” Target CEO Brian Cornell noted that they have seen customers become increasingly cautious, price sensitive and driven by promotions on products, which has put continuous pressure on the company’s margins.
Target remains committed to providing an exceptional and differentiated guest experience at a great value. They bring joy & inspiration to their guests with fast growing private label brands and exclusive brand partnerships.
Read more about Target’s Q3 earnings and their long-term focus on growth and profit goals here: