Dive Brief:

• Target Corp. Wednesday topped expectations with its Q3 report, the fourth straight quarter of traffic increases.

• The retailer reported profit of $549 million, or 87 cents per share, up from $352 million, or 55 cents per share year over year. Revenue rose 2.1% to $17.61 billion. Analysts projected 86 cents in per-share profit on $17.57 billion in sales, according to Thomson Reuters.

• The company raised its earnings forecast for its fiscal year, saying it expects earnings of $4.65 to $4.75 per share, excluding special items, up on the lower end from $4.60 to $4.75.

• Target’s same-store sales grew 1.9%, beating consensus expectations of 1.7%, according to research firm Consensus Metrix, and e-commerce sales grew 20%, adding 0.4 percentage points to the same-store sales number.

Dive Insight:

Under CEO Brian Cornell, Target has taken a focused approach to its turnaround, concentrating on certain categories like baby, natural foods and grocery, and beauty. The retailer aims to recapture its “Tar-jay” design and fashion vibe with more designer collaborations and is rising its store profiles with mannequins in apparel sections and huge signage.

And it has been working to boost its mobile and omnichannel efforts, with experiments with same-day delivery and curbside pick-up, as well as a lower free shipping minimum. That minimum is gone for the holidays through Dec. 20. 

Target’s online performance this quarter is in stark contrast to Wal-Mart, which reported just 10% growth online in Q3.

“The third quarter marked the fourth consecutive quarter in which we have grown traffic, and Target’s sales growth continues to be led by our signature categories: Style, Baby, Kids and Wellness,” Cornell said in the company’s earnings statement. “Our momentum is encouraging, especially in the face of stiffer prior-year comparisons. Our results highlight the benefit of a consistent, company-wide focus on our key strategic priorities, and that focus will continue to position Target well in the months and years ahead. As we look forward to the fourth quarter, our team is focused on strong execution throughout the holidays, and we are confident in our merchandising and marketing plans as we enter the most critical season of the year.”

Target's share price was up 2.8 % at $74.36 in premarket trading Monday. At Tuesday's close, they had fallen nearly 4% for the year so far.