Target Expands its Fresh Produce Tests; Announces Q3 2015 Financial Results
MINNEAPOLIS, MN - Target has released its Q3 2015 financial results, and with it, news of expanding its rapidly improving fresh food programs. In a conference call with investors Wednesday, CEO and Chairman Brian Cornell announced that Target will be expanding its fresh food tests to 25 Los Angeles area stores.
“While we’re encouraged with the recent acceleration in food sales, we are still in a very early stages of our work to provide a unique assortment of fresh, local and healthy items to our guests,” Cornell explains. “I do think one of our highlights in Q3 was the improved performance in food…We’ve been very focused on assortment changes and bringing more natural, organic local items into many of our categories, and we’re seeing the guest react very favorably.”
Cornell went on to explain that Target has been making steady progress in its food sectors, and the company is planning to learn a lot more after doing several fresh-focused remodels within the 25 Los Angeles stores. Target has already been doing similar tests within several stores in the Chicago area with even more on the horizon.
“We’re going to take the learnings from Chicago and apply it in the 25 stores we’re remodeling in Los Angeles and make sure over time we can scale those learnings to multiple markets around the country,” Cornell added.
Other highlights from Target’s Q3 2015 financial report include:
- Third quarter 2015 sales increased 2.1 percent to $17.6 billion from $17.3 billion last year, reflecting a 1.9 percent increase in comparable sales combined with sales from new stores.
- Third quarter EBITDA and EBIT margin rates were 8.6 percent and 5.5 percent, respectively, compared with 8.4 percent and 5.3 percent in 2014.
- Third quarter comparable sales growth was 1.9 percent, driven by traffic growth of 1.4 percent.
- Third quarter Adjusted EPS of $0.86 was above the midpoint of the company’s guidance of $0.79 to $0.89.
- The company now expects full-year 2015 Adjusted EPS of $4.65 to $4.75, compared with prior guidance of $4.60 to $4.75.
- Target returned $1.3 billion to shareholders in the third quarter through dividends and share repurchases.
For more on Target’s fresh food trials as the information is released, check back in with AndNowUKnow.