Target 3Q14 Earnings Call Notes

This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. Full transcripts can be found at Seeking Alpha

Good back to school/september slowed in October but recovered towards the end of the month

“we saw a strong start to back-to-school and to the back-to-college season and that strength continued in September. Like many others, our sales slowed as we entered October, but recovered nicely towards the end of the month as we approached Halloween.”

Omnichannel is key to long term success

“While our work to define Target’s longer-term vision is not yet complete, we’ve made significant progress in defining the short and longer term priorities for our business. First omni-channel and flexible fulfillment capabilities are key to our long-term success.”

Traffic trend has improved each month

“third quarter US traffic was down slightly from a year ago but we are encouraged that our traffic trend has improved meaningfully every quarter this year’

Target calling out TOMS on the conference call

“In September we announced that Target would be partnering with TOMS on a limited edition holiday collection of home goods, apparel, accessories and shoes for women, men and children.”

Probably not going to see much benefit from fuel saving on P&L quite yet

“Certainly there would like to be some benefits if we continue to see fuel prices come down, but we haven’t reached the threshold where fuel surcharges begin to come out of our contracts and I think important given work the team has done to manage some of the port issues out west, we are working around that and moving some freight further, expediting some freight, flying some freight, and I think net-net, that will probably be more of a drag than any fuel savings we will see.”