3 retailers report solid third quarter

CHICAGO (AP) — Deal-craving shoppers helped a trio of prominent U.S. retailers report Tuesday that their third quarter managed to improve this year.

From Target Corp.’s cheap chic shoppers to Saks Inc.’s luxury loving customers, there were signs consumers were willing to splurge on a few extras. Just barely.

At Target, in-store revenue rose along with foot traffic during the three-month period, but shoppers were still buying fewer items during each trip. But shoppers at both stores and discount retailer TJX Cos. surprised analysts in seeming more willing to indulge.

“We’re continuing to see improving sales trends across the board,” said Morningstar analyst Kim Picciola.

Of the retailers that reported Tuesday, TJMaxx’s parent company, TJX, fared best, with quarterly profit up 32 percent. It also said early holiday sales are strong.

TJX’s profit was $347.8 million, or 81 cents per share. Revenue rose 10 percent to $5.24 billion.

At Target, profit climbed 18 percent, helped by ongoing cost-cutting efforts along with better sales in its stores — which climbed 1.4 percent — and improvement in its credit-card business.

The company earned $436 million, or 58 cents per share, during the three months that ended in late October. It earned $369 million, or 49 cents per share, a year earlier. Its revenue rose 1.1 percent to $15.28 billion.

And Saks managed to post a surprise profit for the first time in 18 months as the company began selling more luxury brands starting at lower prices to capture consumers’ dollars. The company has been working with suppliers to lower prices on designer goods.

Target executives planned to launch a one-day sale Thanksgiving Day on Target.com before the traditional Black Friday shopping sprees begin the next day.

Wal-Mart batted back Tuesday afternoon, saying it would temporarily cut prices up to 60 percent on popular toys and video games beginning Saturday and lasting through Black Friday.