Shares of Target
American retailer Target Corp (NYSE:TGT) reported quarterly profits on Wednesday, which were higher than forecast thanks to the growth in online sales due to fast delivery.
The company's shares grew by almost 3% on OTC trading.
Comparable digital sales soared 155% in the third quarter thanks to delivery services on the day of order.
The company was able to take advantage of the disruptions caused by the coronavirus crisis by investing in a private brand and online business.
The head of Target, Brian Cornell, said during a conference call: "These investments have been decisive. Without it, we would not have been able to meet the huge demand generated by the pandemic".
Traffic at Target's shops also increased in the quarter, in contrast to competitor Walmart (NYSE:WMT), even though people now prefer to stay home.
Internet and shop sales in the 3Q period ended 31 October increased by 20.7%. However, analysts believe that the growth will be 11.31%, according to IBES data from Refinitiv.
Net profit increased to $1.01 billion from $714 million a year earlier. On an adjusted basis, the company earned $2.79 per share, surpassing analysts' expectations of $1.60.
Revenue increased by 21.3% to $22.63 billion, exceeding expectations of $20.93 billion.