People wearing masks avoid social distancing as they wait in line to enter Target in Herald Square amid the coronavirus pandemic on May 16, 2020 in New York City.
Alexi Rosenfeld | Getty Images
Target is set to report its third-quarter earnings on Wednesday before the bell.
Here’s what Wall Street is expecting in the fiscal third quarter, according to Refinitiv estimates:
- Earnings per share: $1.60, adjusted
- Revenue: $20.93 billion
The national chain has shown strength since the coronavirus pandemic began spreading across the U.S. As Americans spend more time at home, they have flocked to Target’s same-day services that allow them to pick up groceries, home decor, workout clothes and more by curbside pickup or get bagged purchases delivered to their door by Target-owned delivery company, Shipt.
Target CEO Brian Cornell said the company attracted 10 million new digital customers and $5 billion in market share in the first half of the year. Its curbside pickup service, Drive Up, grew more than 700% in the second quarter from a year earlier.
Shipt has been a growth driver, too. Target sales fulfilled by Shipt grew more than 350% in the second quarter year-over-year. It plans to add 100,000 more shoppers over the holiday season — roughly triple the number since the beginning of the year.
As the pandemic continues amid the holiday season, Target has doubled down on safety and convenience to try to stand out from other retailers. Last month, the company said it would devote twice as many parking spots to curbside pickup. It added a feature on its website that allows shoppers to check if there’s a line outside of their store and if so, reserve a spot ahead of their visit.
Along with retailers including Walmart and Best Buy, Target will be closed on Thanksgiving and the company will stretch out its holiday sales online and in stores.
As of Tuesday’s market close, Target shares have risen 27% since the start of the year, and are now valued at $81.6 billion. The stock hit a 52-week high of $167.42 on Oct. 20.
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