US: Target, Metro Inc top estimates with Q3 growth
Target said net profit rose by 3.2% to $352m, while revenue was up 2.8% to $17.7bn, with US like-for-like sales up 1.2%. The results beat analysts’ estimates and some of Target’s own forecasts, and highlight that the group’s new strategy under CEO Brian Cornell appears to be working.
CFO John Mulligan said Target’s US stores reported the highest store traffic numbers in four quarters, and Cornell added the group was “encouraged by the improving trend we’ve seen in our US business throughout the year”. The group added: “In Canada, we’ve made improvements to our operations, pricing and assortment in time for the holiday season, and we’re eager to measure how our guests respond.”
Target also said it plans to distinguish its food offer from those of its rivals, with Cornell noting: “Our identity in food will continue to involve a combination of national brands and our own and exclusive brands, with increased emphasis on natural and better-for-you products.”
Meanwhile, Canada’s third-largest grocer, Metro Inc saw its net profit surge up 45.4% to C$115.6m, helped by the lack of charges which hurt profits last year. Revenue rose by 3.9% to C$2.7bn, while like-for-like sales were up 2.1%.
The chain said it was helped by the revamp of its Ontario store network, where it converted some Metro outlets to the Food Basics banner, and its acquisition of a majority stake in the Premiere Moisson bakery chain.
Source: kamcity.com
