For Target, third quarter comparable sales declined 4.9 per cent

Target, the big-box retailer, has beat fiscal third-quarter earnings and revenue expectations and it is seeing weaker discretionary spending and deal-hungry shoppers.

The company’s third quarter operating income margin rate of 5.2 per cent was 1.3 percentage points higher than last year, driven by a higher gross margin rate.

The company expects the holiday quarter to look roughly the same, with comparable sales in a range of around a mid-single-digit decline.

Third quarter comparable sales declined 4.9 per cent, it is for the second straight quarter, the company’s comparable sales declined.

Brian Cornell, CEO, Target Corporation, said “In the third quarter, our team continued to successfully navigate our business through a very challenging external environment. While third quarter sales were consistent with our expectations, earnings per share came in far ahead of our forecast. Looking ahead, we’re continuing to make investments throughout our business — in our assortment, our team and the services we offer — to provide the newness, affordability and convenience our guests want during the holiday season and beyond.”