Target and Walmart also saw increased traffic during the quarter.
Walmart reported that revenues for the quarter increased 4.2 percent to approximately $123.2 billion. Excluding currency, total revenue was $122.7 billion, an increase of 3.8 percent compared to the year prior.
In addition, the retailer’s U.S. net sales for the quarter increased 4.3 percent to approximately $77.72 billion, compared to $74.55 billion in the year prior. The company’s international sales were also up 4.1 percent to $29.55 billion, compared to $28.39 billion last year.
Meanwhile, Walmart’s e-commerce initiatives remained strong, with net sales and GMV increasing 50 percent and 54 percent, respectively.
The retailer also saw a 1.5 percent growth in traffic.
“We are pleased with the strong results in the quarter across each of our business segments, and I want to thank our associates for their commitment
Meanwhile, Target reported a 0.9 percent increase in comparable sales as well as a GAAP earnings per share from continuing operations of $0.87 percent, a decrease of 17.7 percent compared to Q3 2016.
The retailer also reported that third quarter sales increased 1.4 percent to $16.7 billion, compared to $16.4 billion last year. Comparable digital sales grew 24 percent. However, segment earnings before interest expense and income taxes, which is Target’s measure of segment profit, were $869 million in Q3 2017, a decrease of 17.8 percent from $1.06 billion in Q3 2016.
The retailer also saw a 1.4 percent increase in traffic.
“We’re very pleased with Target’s third quarter performance, including traffic and sales growth that demonstrate we’re building on the progress we saw in the first half of the year,” says Brian Cornell, chairman and chief executive officer, Target. “The investments we’re making in our business will help Target drive long-term success and ensure we’re well positioned to deliver for guests in the all-important holiday 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. 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. While we expect the fourth-quarter environment to be highly competitive, we are very confident in our holiday season plans.”
Finally, Macy’s reported Q3 earnings per diluted share of 12 cents ($36 million), compared to 5 cents per share in Q3 2016.
However, the company reported sales in Q3 decreased 6.1 percent to $5.281 billion, compared to $5.626 billion in 2016. According to Macy’s, the year-over-year decline reflects the closure of stores previously announced by the company.
Looking ahead, Macy’s expects comparable sales on an owned basis to decline between 2.2 percent and 3.3 percent, with comparable sales on an owned plus licensed basis to decline between 2 percent and 3 percent. Total sales are also expected to be down between 3.2 percent and 4.3 percent in fiscal 2017.
“Overall, we’re pleased with the results from the third quarter and we remain on track to meet our full-year sales and earnings guidance for 2017,” says Jeff Gennette, chief executive officer, Macy’s. “Importantly, we also saw better gross margin performance primarily due to our tightly controlled inventory position. A highlight of the third quarter was the launch of the new Star Rewards loyalty program–our best customers are responding positively. We also saw continued double-digit growth in digital and are encouraged by the potential of Backstage in Macy’s stores.”
Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes, it’s completely free.