Revenue during the quarter went up marginally by 2.08 percent to $17,613 million from $17,254 million in the previous year period. Gross margin for the quarter contracted 9 basis points over the previous year period to 29.37 percent. Total expenses were 95.03 percent of quarterly revenues, up from 94.76 percent for the same period last year. That has resulted in a contraction of 27 basis points in operating margin to 4.97 percent.

Operating income for the quarter was $876 million, compared with $904 million in the previous year period.

"We're pleased with our third quarter financial results, as both sales and adjusted earnings per share were near the upper end of our expectations," said Brian Cornell, chairman and chief executive officer of Target. "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. 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."

For the fourth-quarter of 2015, Target Corporation forecasts revenue to grow at by percent. It expects diluted earnings per share to be in the range of $1.48 to $1.58 on an adjusted basis. For fiscal year 2015, Target Corporation expects diluted earnings per share to be in the range of $4.65 to $4.75 on adjusted basis.

The company has spent $1,069 million cash to meet investing activities during the nine month period as against cash outgo of $1,416 million in the last year period. It has incurred net capital expenditure of $1,108 million on net basis during the nine month period, down 13.30 percent or $170 million from year ago period.

The company has spent $2,924 million cash to carry out financing activities during the nine month period as against cash outgo of $550 million in the last year period.

Cash and cash equivalents stood at $1,977 million as on Oct. 31, 2015, up 153.46 percent or $1,197 million from $780 million on Nov. 01, 2014.

Working capital increases sharply
Target Corporation has recorded an increase in the working capital over the last year. It stood at $1,346 million as at Oct. 31, 2015, up 330.03 percent or $1,033 million from $313 million on Nov. 01, 2014. Current ratio was at 1.10 as on Oct. 31, 2015, up from 1.02 on Nov. 01, 2014.

Days inventory outstanding has decreased to 68 days for the quarter compared with 71 days for the previous year period. At the same time, days payable outstanding went down to 58 days for the quarter from 60 for the same period last year.

Debt comes down marginally
Target Corporation has recorded a decline in total debt over the last one year. It stood at $12,776 million as on Oct. 31, 2015, down 2.52 percent or $330 million from $13,106 million on Nov. 01, 2014. Total debt was 30.64 percent of total assets as on Oct. 31, 2015, compared with 28.21 percent on Nov. 01, 2014. Debt to equity ratio was at 0.96 as on Oct. 31, 2015, up from 0.80 as on Nov. 01, 2014. Interest coverage ratio deteriorated to 5.80 for the quarter from 6.19 for the same period last year.