Target Corporation (TGT) Q3 2017 earnings results were released before opening bell this morning, and the company reported adjusted earnings of 91 cents per share on $16.67 billion in revenue. Wall Street had been expecting adjusted earnings of 86 cents per share on $16.6 billion in sales. Target had guided for adjusted earnings of 75 cents to 95 cents per share. In last year’s third quarter, Target reported $16.4 billion in revenue.

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Target Q3 2017 earnings

On a GAAP basis, Target Q3 2017 earnings per share from continuing operations fell to 87 cents from $1.06 per share in last year’s third quarter. Net earnings per share amounted to 88 cents per share on a GAAP basis, versus $1.06 per share in the year-ago quarter. Net income amounted to $480 million, versus the $608 million that was recorded in the year-ago quarter. Target’s gross margin ticked slightly lower to 29.7% from 29.8% a year ago. The EBIT margin fell to 5.2% from 6.4% a year ago, while segment EBIT fell 17.8% year over year to $869 million.

Comparable traffic increased 1.4% year over year as comparable sales grew 0.9%. Comparable digital channel sales grew 24%, adding to the 26% growth that was recorded in last year’s third quarter. Management said they’re prepared for the holiday shopping season.

“Our assortment now includes thousands of new items from the eight exclusive brands we’ve launched throughout 2017, including Hearth and Hand with Magnolia, our new home goods partnership with Chip and Joanna Gaines,” Chairman and CEO Brian Cornell said in a statement on the Target Q3 2017 earnings results. “Guests this holiday season will experience elevated in-store service reflecting our investments in wages, training and additional hours for our team, and they’ll find more value than ever before through a combination of being priced right daily and offering impressive deals.

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