Target’s focus on e-commerce fulfillment and store renovations might be driving traffic, but it’s hurting its bottom line. CEO Brian Cornell has faith, however, that it will be able to deliver profitable growth beginning next year, and so do analysts.
“Target’s Q3 results reflect the continued favorable impact of its multi-year investment strategy, with impressive sales growth both in stores and online, with minimal negative impact on margins, indicating leveraging of these investments,” stated Moody’s Lead Retail Analyst Charlie O’Shea in an email.
