The retailer reversed four straight quarters of falling comparable sales and raised its profit target for the fiscal year. Fred Katayama reports.
Sales turnaround at Target. The retailer reversed four straight quarters of falling sales at existing stores as more people visited the retailer. Profit fell, but that along with comparable sales and net sales beat analysts' expectations. What's more, Target raised its profit target for the fiscal year. The company's shares jumped at the market open Wednesday. They have vastly underperformed those of rival Wal-Mart with a 25 percent decline this year. Cowen senior analyst Oliver Chen said, "Target's results today give us much better confidence that stated strategies are taking hold in better comps and traffic." In a bid to turn itself around, Target has been doubling the number of small-format stores, keeping grocery prices low, and investing in e-commerce. On Monday, Target said it's buying a logistics software company so it can speed up deliveries. It's currently testing same-day delivery at one of its New York stores.