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Target Reinforcing Natural Foods Push After Better than Expected Q3 2014

Target Reinforcing Natural Foods Push After Better than Expected Q3 2014

MINNEAPOLIS, MN – Target has laid out plans for a stronger push on the food section moving forward.

Brian Cornell, Chairman and CEO, Target CorporationIn the company’s earnings conference call, Brian Cornell, Chairman and CEO of Target Corporation said, “We believe we should continue to present a meaningful food offering in our stores and online. But we need to ensure that our food offering is uniquely Target and clearly differentiated from our competitors.”

To help maintain that differentiation, Target’s identity and food will continue to involve a combination of national brands alongside the retailer’s exclusive brands. 

Cornell added that Target’s team is stepping back and “listening to the guests, really understanding what the Target guest is looking for in food. From an assortment standpoint, from a newness standpoint, we talked about the fact that as we go forward, you should expect to see more natural and organic offerings.”

This news comes after the release of Target Corporation’s third quarter results.

“We’re pleased with our third quarter financial results, which were driven by better-than-expected performance in our U.S. segment,” said Brian Cornell, Chairman and CEO of Target Corporation. “We’re encouraged by the improving trend we’ve seen in our U.S. business throughout the year, and our fourth quarter plans are designed to sustain this momentum.”

For this quarter, the retailer saw U.S. segment sales increase 1.9% to $17.3 billion from $16.9 billion last year and Canadian segment sales increase 43.8% to $479 million from $333 million last year.

Cornell 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. The entire company is energized as we approach the peak of the holiday shopping season, and we are looking forward to delivering an outstanding store and digital experience to our guests.”

Other highlights from the quarter include:

  • Third quarter adjusted EPS of $0.54 was above the expected range of $0.40 to $0.50.
  • U.S. segment transactions declined 0.4 percent, an improvement of more than 1 percentage point compared with the first half of the year. 
  • Target paid dividends of $330 million in third quarter 2014, an increase of 21.4 percent from $271 million last year.

By the close of the market yesterday, the release of these results caused Target stock to jump $4.99 for a total of $72.50, a 7.39% increase.

Stay tuned to AndNowUKnow as we continue to follow these upcoming changes at Target.