Holiday sales boost Target forecasts, shares jump

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Holiday sales boost Target forecasts, shares jump
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Target Corp forecast 2019 profit above Wall Street estimates on Tuesday as stron...

- Target Corp forecast 2019 profit above Wall Street estimates on Tuesday as strong online sales and higher footfall at stores drove better-than-expected holiday sales, sending its shares up 6 percent.

The Minneapolis-based retailer offered free two-day shipping on hundreds of thousands of items and it said spruced up “buy online and pick up at store” options accounted for three quarters of online sales. “Target’s strategic initiatives ...are clearly bearing fruit, with its online push continuing to generate impressive gains,” Moody’s analyst Charlie O’Shea said.

These investments have, however, hurt Target’s margins. In the quarter gross profit margin fell to 25.7 percent from 26.1 percent, a year earlier.

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