Target delivered another quarter of strong results, overcoming a slew of challenges from inflationary pressures to congested ports.
Third-quarter profits rose nearly 47%, while sales increased 13.2%, both exceeding expectations.
The Minneapolis-based company raised projections for fourth-quarter comparable store sales as well.
Target joins Walmart heading into the holiday shopping season with momentum. The biggest U.S. retailers are rerouting goods to less congested ports, some even chartering their own vessels.
Target and Walmart are using their scale to keep prices comparatively low and perhaps most importantly, keeping its shelves full when so much is in short supply. Target's margins are being pressured, however, and shares slipped early.
With Thanksgiving coming next week, experts are saying this could be the most expensive holiday meal Americans have tried to put on their tables. Supply shortages are leading to some higher prices.
CBS News analyst Jill Schlesinger told WCCO Radio that investors are concerned about inflation.
“What’s going to happen with these price increase,” Schlesinger asks. “We’re going to get a report out that shows startling numbers, probably the highest pace of inflation in 30 years. We also know that it’s going to retreat. How long will it take those prices increases to calm down, and what will in linger in terms of a higher price, we don’t know yet. And that’s the main concern when you look at the markets.”
The Associated Press contributed to this story.
