Target Corporation reported mixed results for its third quarter of 2024. While the company saw a 2.4% increase in store traffic, overall sales were impacted by a recent decline in discretionary categories. However, according to the Q3 2024 earnings call, the company has been experiencing consistent sales growth in the beauty category.
Rick Gomez, executive vice president, chief commercial officer, Target, says, “In terms of category performance, sales and market share gains were strongest in beauty again this quarter with comparable sales growth of more than 6%. This strong performance was broad-based with growth in our core beauty business as well as our Ulta Beauty at Target offerings.”
Gomez adds, “Newness across the portfolio resonated with a wide array of consumers including growing affinity with younger Gen Z guests from Blake Lily's exclusive to Target hair care line, Blake Brown, to the continued success of many sizes that offer those little indulgences our beauty assortment continues to be a standout with our guests.”
The company also is anticipating a successful holiday season, and Gomez says, “we'll offer more than 100 new items, including incredible gift set options.”
Brian C. Cornell, chair and chief executive officer, Target, states, “Even as we encounter short-term headwinds, like we've seen recently, we immediately focus on leveraging our assets and strategy to move beyond those challenges. For example, while we're confident that discretionary demand will normalize over time, we can continue to lean on our beauty and frequency categories to help offset those top-line pressures, just as we have over the last couple of years.”
Cornell concludes, “We're not pleased where we are today, but we see a lot of green shoots and a lot of long-term opportunities to continue to advance our business, a destination for consumers who are shopping our stores or visiting our online assets and continue to be that place where consumers come for that magical Target experience where we bring those great national brands, our great own brands, and those unique partnerships that you can only find at Target.”
